Over the last decades the research on monetary policy has largely concentrated on the impact of monetary authorities’ decisions on inflation and the fine-tuning of the macroeconomic, so that distributional effects of monetary policy which are non-trivial has been ignored. A view that has become increasingly popular since the financial crisis 2008 is that expansionary monetary policy can exacerb...

An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed. A subgame perfect Nash equilibrium for the general dynamic stochastic game is shown to exist as a limit of finite-horizon equilibria. This equilibrium has a relatively simple structure characterized by two numbers per finite history. Under very general conditions, it tends to exhibi...

This paper constructs an open economy dynamic stochastic general equilibrium (DSGE) model with oil to investigate the transmission mechanism and impact effects of price fluctuations driven by different factors on China’s macroeconomy using quarterly data from 1996 2019. The results show that international crude supply-driven decline promotes positive output growth in short run through cost effe...

In the first paper presented at the conference, Riccardo DiCecio and Edward Nelson presented a monetary policy model estimated to fit U.K. data. The model is a dynamic stochastic general equilibrium (DSGE) model based on the popular work of Christiano, Eichenbaum, and Evans (2005; CEE). This version of the DSGE model is characterized by a number of economic frictions arising from wage and price...

This study aimed to examine the effects of monetary policy on macroeconomic variables with regard to the collateral constraint. For this purpose, a dynamic stochastic general equilibrium (DSGE) was developed for Iran’s economic status. Two scenarios were considered as to account for the behavior of the central bank. In the first scenario, the monetary rule is modeled according to the GDP gap an...