; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Asymmetric Expectation Effects of Regime Shifts and the Great Moderation"; ; "batchuser@example.com"; "Zha, Tao", "Waggoner, Daniel F.", "Liu, Zheng"; "Federal Reserve Bank of Minneapolis"; "Expectations formation", "Structural breaks", "Lucas critique", "Macroeconomic volatility", "Monetary policy regime"; "E52 - Monetary Policy", "E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems", "E32 - Business Fluctuations; Cycles"; "The possibility of regime shifts in monetary policy can have important effects on rational agents’ expectation formation and equilibrium dynamics. In a DSGE model where the monetary policy rule switches between a dovish regime that accommodates inflation and a hawkish regime that stabilizes inflation, the expectation effect is asymmetric across regimes. Such an asymmetric effect makes it difficult, but still possible, to generate substantial reductions in the volatilities of inflation and output as the monetary policy switches from the dovish regime to the hawkish regime. "^^; "2007-10-01"; "2019-06-24T19:38:33.197639074+00:00"^^; "https://doi.org/10.21034/wp.653"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Wed Oct 23 17:51:09 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "821", "461", "876"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "653"; "Macroeconomic volatility", "Expectations formation", "Structural breaks", "Lucas critique", "Monetary policy regime"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in _Review of Economic Dynamics_ (Vol. 12, Iss. 2, April 2009, pp. 284-303), https://doi.org/10.1016/j.red.2008.10.001. "^^; ; "Publication" . ; .