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...

We assess the extent to which wage inflation policies in Germany could contribute an economic rebalancing euro area and rest of world. find that a rise nominal has positive short-run effects on output area. The duration constant interest rates expectations about monetary policy stance matter magnitude results obtained. establish modeling trade relationships with world is particular importance, ...

Most dynamic stochastic general equilibrium models (DSGE) of the macroeconomy assume that labor is traded in a spot market. Two exceptions (Andolfatto [3], Merz [11]) combine the two-sided search model of Mortenson and Pissarides, [14], [13], [15] with a one-sector real business cycle model. These hybrid models are successful, in some dimensions, but they cannot account for observed volatility ...

This paper proposes an empirical dynamic stochastic general equilibrium (DSGE) framework to measure monetary policy when the nominal short-term interest rate is zero. The framework assumes that there exists a shadow rate which represents the monetary policy stance of a central bank. When the shadow rate is positive, it is observed as the policy rate of the central bank. However, when it is nega...

This paper builds a small open economy dynamic stochastic general equilibrium (DSGE) model for Indonesia with state-dependent pricing (SDP) and studies its implications policy analysis. Variations in the extensive margin of price adjustment under SDP are shown to non-trivially affect model-generated variance decompositions impulse responses various shocks. DSGE model-based analyses conducted wi...

Comparative analysis of the effects monetary and government financial expenditures shocks in context fractional full reserve banking Iran: DSGE approach

We analyze the euro area business cycle in a medium scale DSGE model where we assume two stochastic trends: one on total factor productivity and one on the in ation target of the central bank. To justify our choice of integrated trends, we test alternative speci cations for both of them. We do so, estimating trends together with the model's structural parameters, to prevent estimation biases. I...