Is the Macroeconomy Locally Unstable and Why Should We Care?
---- Acknowledgments ----
The authors thank the two discussants Laura Veldkamp and Ivan Werning as well as Jonathan Parker for useful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
---- Disclosure of Financial Relationships for Paul Beaudry ----
Paul Beaudry would like to acknowledge financial support from the Social Science and Research Council of Canada.