Forthcoming American Economic Journal: MacroeconomicsIdentifying Monetary Policy Shocks: A Natural Language ApproachS. Borağan Aruoba · Thomas DrechselTo study how monetary policy affects the economy, macroeconomists must isolate "shocks" — changes in interest rates that are not systematic responses to economic conditions. The paper proposes a new …
Published Classic Journal of Monetary Economics Published Nov 2024The long and variable lags of monetary policy: Evidence from disaggregated price indicesS. Borağan Aruoba · Thomas DrechselThis 2024 Journal of Monetary Economics paper by S. Borağan Aruoba and Thomas Drechsel asks why the aggregate U.S.