We introduce arbitrary precision arithmetic to resolve practical difficulties arising in the identification analysis of dynamic stochastic general equilibrium (DSGE) models. A three-step procedure is proposed address local and global empirical distance between The method applied monetary fiscal policy interaction models, revealing exact observational equivalence a small-scale model an indetermi...

The countercyclical monetary policy is a policy that economists recommend to adopt in order to slow down the economic fluctuations. The aim of this study is to address the question that, in the presence of fiscal dominance and considering institutional quality (IQL), what the optimal monetary policy should be during the business cycles? To find the appropriate answer, first, in the framework of...

Abstract We examine, conditional on structural shocks, the macroeconomic performance of different countercyclical capital buffer (CCyB) rules in small open economy estimated medium-scale Dynamic Stochastic General Equilibrium (DSGE) model. find that based credit gap create a trade-off between stabilization fluctuations originating housing market and caused by foreign demand shocks. The disappea...

This paper attempts to investigate the impact of policy mix in dealing with COVID-19 pandemic. We employ New Keynesian Dynamic Stochastic General Equilibrium (DSGE) framework and Del Negro et al. (2007) approach estimate model. effectiveness Indonesia by taking into account real financial linkages, as well other market imperfections. intend analyze evaluate adequacy monetary, fiscal, macroprude...

We review the current state of estimation dynamic stochastic general equilibrium (DSGE) models. After introducing a framework for dealing with DSGE models, state-space representation, we discuss how to evaluate moments or likelihood function implied by such structure. discuss, in varying degrees detail, recent advances field, as tempered particle filter, approximated Bayesian computation, Hamil...