What are the effects of financial market imperfections on the fluctuations in unemployment and vacancies in the labor market? Standard DSGE models are silent about this since they have not modeled unemployment directly. In this paper I augment a standard monetary DSGE model with explicit financial and labor market frictions. The financial frictions are modeled as Bernanke, Gertler and Gilchrist...

Purpose This paper aims to analyse the stabilizing macroeconomic effects of economic policies during COVID-19 crisis in Spain. Design/methodology/approach The contribution structural shocks that explain behaviour main aggregates 2020 are estimated, and simulated using a dynamic stochastic general equilibrium (DSGE) model estimated for Spanish economy. Findings results highlight importance suppl...