Benjamin Born

Frankfurt School of Finance and Management and CEPR

Gernot J. Müller

University of Tübingen and CEPR

Johannes Pfeifer

University of Cologne

We thank Yuriy Gorodnichenko (the editor), as well as three anonymous referees. We also thank our discussants Nicola Fuchs-Schündeln, Alessandro Gioffré, Klemens Hauzenberger, Josef Hollmayr, and Tomasz Wieladek, as well as Kerstin Bernoth, Florian Kirsch, Helmut Lütkepohl, Enrique Mendoza, Valerie Ramey, Almuth Scholl, and various seminar audiences, for very useful comments and discussions. Andreas Born, Marc Faupel, Alexander Scheer, Diana Schüler, and Susanne Wellmann have provided excellent research assistance. We gratefully acknowledge research support from the Research Center SAFE, funded by the State of Hessen initiative for research LOEWE. G.M. also thanks the German Science Foundation (DFG) for financial support under the Priority Program 1578. The usual disclaimer applies.

A supplemental appendix is available online at http://www.mitpressjournals.org/doi/suppl/10.1162/rest_a_00844.