The Power of Open-Mouth Policies
Vadym Lepetyuk, Lilia Maliar, Serguei Maliar and John B. Taylor
December 2024

== Experiment 1 ==
Code: experiment1.m
A gradual increase in the inflation target from 2% to 3% that
appears in the Taylor rule.

In 2022 paper submission, the monetary policy rule was slightly different
with Rss in place of rss*exp(linftarg(1)), hence the results are slightly different too. 

== Experiment 2 ==
Code: experiment2.m
A gradual increase in the inflation target with 50% probability

== Experiment 3 ==
Code: experiment3.m
Monetary policy normalization (Forward guidance). Coefficients in the 
Taylor rule are equal to zero for the first four and eight quarters, and 
they return back to their normal values afterwards.

== Experiment 4 ==
Code: experiment4.m
A switch to a more aggressive Taylor rule

== Experiment 5 ==
Code: experiment5.m
A switch to price level targeting either implemented
immediately or announced one year in advance.

== Experiment 6 ==
Code: experiment6.m
A negative foreign demand shock and a switch to price-level targeting

== Experiment 7 ==
Code: experiment7.m
A switch to average inflation targeting either implemented
immediately or announced one year in advance.

== Experiment 8 ==
Code: experiment8.m
Recurrent versus non-recurrent news shocks
Comparison of the EFP path with a path obtained by assuming news shocks



