models in the conduct of policy: Use as intended.
The most popular model currently employed by central banks and economists is DSGE
(dynamic stochastic general equilibrium).
First, the VAR and DSGE
models recover very similar estimates of the low-frequency component of the natural rate, as shown in figure 1.
In this paper, we studied how the role of FIs' net worth differs from that of the net worth of nonfinancial firms in macroeconomic dynamics, using a DSGE
By the early 2000s, DSGE
models had developed to the point where they showed comparable forecasting performance to time series models (such as vector-autoregressive models) and were theoretically rich enough to be used for detailed policy analysis.
significa "equilibrio general dinamico estocastico".
As a consequence, and critical to understanding models such as DSGE
, there is never any conflict between the immediate consumption value of an item and its resale price.
In a Bayesian DSGE
estimation approach, a prior distribution needs to be specified for the model parameters.
models are also used to estimate fiscal multipliers.
Monetary policy e requerimento de reserve em um modelo DSGE
com friccoes financeiras.
Keeping in view the strengths of DSGE
models and difficulties in their utilization in policy analysis, IMF economists Berg, Karam and Laxton (2006A and B) customized a standard DSGE
model for monetary policy analysis.
models, which had become increasingly influential in central banks over the 10 or 15 years leading up to the crisis, did not alert policymakers to the problem.