DSGE models for monetary policy analysis

Lawrence J. Christiano; Mathias Trabandt; Karl Walentin

doi:10.1016/B978-0-444-53238-1.00007-7

DSGE models for monetary policy analysis

Lawrence J. Christiano^*, Mathias Trabandt, Karl Walentin

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

187 Scopus citations

Abstract

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.

Original language	English (US)
Pages (from-to)	285-367
Number of pages	83
Journal	Handbook of Monetary Economics
Volume	3
Issue number	C
DOIs	https://doi.org/10.1016/B978-0-444-53238-1.00007-7
State	Published - 2010

Keywords

Frisch Labor Supply Elasticity
HP Filter
Impulse Response Function
Limited Information Bayesian Estimation
Materials Input for Production
New Keynesian DSGE Models
Output Gap
Potential Output
Taylor Principle
Unemployment
Vector Autoregression
Working Capital Channel

ASJC Scopus subject areas

Finance
Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/B978-0-444-53238-1.00007-7

Cite this

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title = "DSGE models for monetary policy analysis",

abstract = "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.",

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T1 - DSGE models for monetary policy analysis

AU - Christiano, Lawrence J.

AU - Trabandt, Mathias

AU - Walentin, Karl

PY - 2010

Y1 - 2010

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AB - 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.

KW - Frisch Labor Supply Elasticity

KW - HP Filter

KW - Impulse Response Function

KW - Limited Information Bayesian Estimation

KW - Materials Input for Production

KW - New Keynesian DSGE Models

KW - Output Gap

KW - Potential Output

KW - Taylor Principle

KW - Unemployment

KW - Vector Autoregression

KW - Working Capital Channel

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SN - 1573-4498

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EP - 367

JO - Handbook of Monetary Economics

JF - Handbook of Monetary Economics

IS - C

ER -

DSGE models for monetary policy analysis

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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