Davide Debortoli, Jordi Galí, Luca Gambetti

NBER Working Paper No. 25820
Issued in May 2019

---- Acknowledgments ----

We have benefited from comments from Christian Brownlees, Marty Eichenbaum, Barbara Rossi and by participants at the NBER Summer Institute, Bicocca University, UPF, Bucharest INFER Workshop, SUFE, ECB, Stockholm School of Economics and Sveriges Riksbank. Luca Gambetti acknowledges the financial support of the Spanish Ministry of Economy and Competitiveness through grant ECO2015-67602-P. The three authors acknowledge the support of the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2015-0563), and the Barcelona Graduate School of Economics. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

---- Disclosure of Financial Relationships for Jordi Galí ----

Jordi Galí is a regular consultant to the Sveriges Riksbank. To his knowledge that institution does not have a financial, ideological, or political stake related to the article. No party had the right to review the paper prior to its circulation.

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