000			01158nam a22001457a 4500
999			_c520663 _d520663
008			220930b ||||| |||| 00| 0 eng d
100			_aCaballero, Ricardo J. and Simsek, Alp _934701
245			_aMonetary policy with opinionated markets
260			_aThe American Economic Review
300			_a112(7), Jul, 2022: p.2353-2392
520			_aWe build a model in which the Fed and the market disagree about future aggregate demand. The market anticipates monetary policy "mistakes," which affect current demand and induce the Fed to partially accommodate the market's view. The Fed expects to implement its view gradually. Announcements that reveal an unexpected change in the Fed's belief provide a microfoundation for monetary policy shocks. Tantrum shocks arise when the market misinterprets the Fed's belief and overreacts to its announcement. Uncertainty about tantrums motivates further gradualism and communication. Finally, disagreements affect the market's expected inflation and induce a policy trade-off similar to "cost-push" shocks. – Reproduced
773			_aThe American Economic Review
906			_aMONETARY POLICY
942			_cAR