{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,10]],"date-time":"2026-10-10T02:26:53Z","timestamp":1791599213807,"version":"4.3.4"},"reference-count":41,"publisher":"The Econometric Society","issue":"4","license":[{"start":{"date-parts":[[2021,1,1]],"date-time":"2021-01-01T00:00:00Z","timestamp":1609459200000},"content-version":"unspecified","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/"}],"funder":[{"DOI":"10.13039\/501100003329","name":"Ministerio de Econom\u00eda y Competitividad","doi-asserted-by":"publisher","id":[{"id":"10.13039\/501100003329","id-type":"DOI","asserted-by":"publisher"}]},{"DOI":"10.13039\/501100019179","name":"Fundaci\u00f3n Bancaria Caixa d\u2019Estalvis i Pensions de Barcelona","doi-asserted-by":"publisher","id":[{"id":"10.13039\/501100019179","id-type":"DOI","asserted-by":"publisher"}]},{"DOI":"10.13039\/501100011033","name":"Agencia Estatal de Investigaci\u00f3n","doi-asserted-by":"publisher","id":[{"id":"10.13039\/501100011033","id-type":"DOI","asserted-by":"publisher"}]}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["QE"],"abstract":"<jats:p>We propose a new approach to analyze economic shocks. Our new procedure identifies economic shocks as exogenous shifts in a function; hence, we call them \u201c\n            <jats:italic>functional shocks.<\/jats:italic>\u201d We show how to identify such shocks and how to trace their effects in the economy via VARs using \u201c\n            <jats:italic>VARs with functional shocks<\/jats:italic>\u201d and \u201c\n            <jats:italic>functional local projections.<\/jats:italic>\u201d Using our new procedure, we address the crucial question of studying the effects of monetary policy by identifying monetary policy shocks as shifts in the whole term structure of government bond yields in a narrow window of time around monetary policy announcements. Our approach sheds new light on the effects of monetary policy shocks, both in conventional and unconventional periods, and shows that traditional identification procedures may miss important effects. Our new procedure has the advantage of identifying monetary policy shocks during both conventional and unconventional monetary policy periods in a unified manner and can be applied more generally to other economic shocks.\n          <\/jats:p>","DOI":"10.3982\/qe1225","type":"journal-article","created":{"date-parts":[[2021,10,29]],"date-time":"2021-10-29T09:08:16Z","timestamp":1635498496000},"page":"1085-1138","source":"Crossref","is-referenced-by-count":52,"title":["A new approach to measuring economic policy shocks, with an application to conventional and unconventional monetary policy"],"prefix":"10.3982","volume":"12","author":[{"given":"Atsushi","family":"Inoue","sequence":"first","affiliation":[{"name":"Department of Economics, Vanderbilt University"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Barbara","family":"Rossi","sequence":"additional","affiliation":[{"name":"ICREA-Univ. 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