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American Economic Journal Macroeconomics· 2015Q1

Monetary Policy Surprises, Credit Costs, and Economic Activity

Mark Gertler, Péter Karádi

Short summary

Monetary policy shocks, identified via high-frequency announcement surprises, lead to modest short-rate changes but large shifts in credit costs, primarily driven by term premia and credit spreads.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance