DSGE Models for Monetary Policy Analysis

By L. Christiano, Mathias Trabandt, Karl Walentin. 2010

396 citations recorded by the source corpus.

Monetary DSGE models are widely used because they fit the data well and they can be used to address important monetary policy questions. We provide a selective review of these developments. Policy analysis with DSGE models requires using data to assign numerical values to model parameters. The chapter describes and implements Bayesian moment matching and impulse response matching procedures for this purpose.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/3a5d8557fe600a53e660257c80939eaa83484465

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In Economics and Econometrics

Citations in the corpus

On DSGE Models (2018, positive): “Building on the work of Chernozhukov and Hong (2003), Christiano et al. (2010) showed how the Bayesian approach can be applied in limited information contexts.”
Economic Forecasting with an Agent-Based Model (2020, methodology): “In particular, models following the New Keynesian paradigm, that include financial and real frictions to replicate phenomena observed in empirical data, have become a new standard in macroeconomics (Christiano et al., 2010; Brunnermeier et al., 2013).”
Collateral Constraints and Macroeconomic Asymmetries (2013, positive): “…or the ZLB bind, the model’s impulse responses, for instance those to monetary shocks, are in line with the findings of existing studies, such as Christiano, Trabandt, and Walentin (2010).15 Second, key moments in the data line up well with those of our estimated model.16 In the model like in…”
Unemployment in an Estimated New Keynesian Model (2012, positive): “This is consistent with the empirical VAR evidence as, for example, in Christiano et al (2010).”