A shadow rate without a lower bound constraint

• A shadow rate that measures the monetary policy stance in any lower-bound environment Shadow rates are estimated for US, Sweden, euro area and UK They fall (rise) as becomes more expansionary (contractionary) Exchange respond to conventional than unconventional Counterfactuals DSGE models suggest US Swedish policies had macro effects during their entire periods We propose a without lower bound constraint overall of environment, prior period, well current ”New Normal” where have become standard. Using daily yield curve data we estimate UK, document they (contractionary), following announcements cuts (hikes), forward guidance, balance sheet expansions (contractions). In addition, show two applications our rate. First, decompose responses into surprises, assess pass-through each type exchange rates. find policy. Lastly, counterfactual experiments inflation Sweden would been on average about 0.8 0.33 percentage points lower, respectively, not used.