New measure of monetary policy shocks impacts unemployment and inflation expectations.
The article introduces a new way to measure the impact of changes in monetary policy on the economy. By combining two existing methods, the researchers created a measure that shows how surprises in monetary policy affect people's expectations about unemployment and inflation. They found that this new measure doesn't have a significant impact on long-term interest rates, but it does affect stock prices and futures negatively. Overall, this new measure provides valuable insights into how monetary policy shocks influence the economy.