This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

This chapter reviews recent research that grapples with the question: What happens after an
exogenous shock to monetary policy? We argue that this question is interesting because it …

Structural vector autoregressions (VARs) are widely used to trace out the effect of monetary
policy innovations on the economy. However, the sparse information sets typically used in …

The new edition of a comprehensive treatment of monetary economics, including the first
extensive coverage of the effective lower bound on nominal interest rates. This textbook …

This paper critically reviews the use of vector autoregressions (VARs) for four tasks: data
description, forecasting, structural inference, and policy analysis. The paper begins with a …

Emerging market business cycles exhibit strongly countercyclical current accounts,
consumption volatility that exceeds income volatility, and “sudden stops” in capital inflows …

This chapter provides an overview of and user's guide to dynamic factor models (DFMs),
their estimation, and their uses in empirical macroeconomics. It also surveys recent …

The last twenty years have witnessed tremendous advances in the mathematical, statistical,
and computational tools available to applied macroeconomists. This rapidly evolving field …

This article provides an overview of the panel vector autoregressive models (VAR) used in
macroeconomics and finance to study the dynamic relationships between heterogeneous …

Yes. We construct a measure of aggregate technology change, controlling for aggregation
effects, varying utilization of capital and labor, nonconstant returns, and imperfect …