and E Smets (2008), "Differences in Interest Rate Policy at the ECB and the Fed: An Investigation with a Medium-Scale DSGE
Model", Journal of Money, Credit and Banking, Vol.
An alternative methodology is the calibration approach to DSGE
Laforte, 2008, "Natural rate measures in an estimated DSGE
model of the U.S.
In second place, we use a DSGE
model in an economy with an infinite horizon, as is the Overlapping Generations (OG.) Thus, we are able to discuss the interesting equilibrium dynamics defining each exchange rate arrangement, as opposed to both Diamond and Dybvig (1983) (D-D) and C-V.
Who is right--the empiricists who claim that energy price hikes have strong and significant effects on business cycles or the DSGE
economists who claim that it is mostly productivity that matters?
Que disent les modeles DSGE
? Revue Economique, 66(3): 541-572.
In the context of real business cycle and DSGE
models, the mapping from the higher-order moments of exogenous processes to moments of endogenous variables, such as the mapping studied in this paper, is relatively underexplored.
He briefly sketches four areas of postcrisis DSGE
criticism: "do nothing"--for example, current models did as well as could be expected in light of policy errors; "model finance," or make more of the financial sector endogenous; "add complexity"--for example, simulate complexity via agent-based computational models; and take a "fringe position to reconsider formalism." The author strongly suggests that these approaches do not go far enough.
Keywords: Fiscal Neutrality; Central Bank; DSGE
(24) Michael Dotsey's Business Review article discusses how dynamic stochastic general equilibrium (DSGE
) models are used for the analysis of monetary policy.