Dynamic stochastic general equilibrium (DSGE)
RBA paper offers new way to add housing sector to DSGE models
Authors find their model delivers “reasonable” forecast performance
BIS’s da Silva defends DSGE modelling efforts
New research efforts are opening up fresh possibilities – BIS
Financial frictions key to DSGE performance – NY Fed paper
The New York Fed’s DSGE model was at least equal to private forecasts, researchers say
Bank of Korea unveils changes to its DSGE model
Existing model’s accuracy reduced after structural changes in economy
Economists need to better understand macrofinancial links – BIS paper
Stijn Claessens and Ayhan Kose call for “new generation of models”
Cyclical price analysis needs major improvements – ECB paper
Researchers say DSGE models’ handling of housing prices is subject to errors
Book notes: The End of Theory, by Richard Bookstaber
Bookstaber provides an entertaining introduction to agent-based modelling
Veteran economists weigh in on ‘rebuilding’ macro theory
Economists tackle the question of how – and whether – to save the DSGE model
Fed paper sets out model of financial panics
Mark Gertler, Nobuhiro Kiyotaki and Andrea Prestipino examine banking panics in a DSGE model
Haldane outlines ‘interdisciplinary’ economics model
Andy Haldane and Arthur Turrell describe a more interdisciplinary approach to modelling
Sri Lanka on track to flexible targeting – deputy governor
Central bank has much of infrastructure in place, but pace needs to increase, says Weerasinghe
Interview: Edward Prescott
Nobel Prize-winner speaks about time inconsistency and real business cycle theory
BoE paper adds time-varying parameters to DSGE model
Method allows parameters to shift over time as the structure of the economy changes
IMF’s Adrian sketches macro-financial model of term premium
Tobias Adrian outlines a new way of modelling financial cycles within a New Keynesian framework
Survey data can help with modelling expectations – BoJ paper
Discussion paper outlines method of incorporating survey data as a proxy for expectations
Book notes: Can We Avoid Another Financial Crisis?, by Steve Keen
Steve Keen challenges “mainstream” economic thinking in this concise book
BoE economists criticise DSGE inflation modelling
Team including MPC member Kristin Forbes criticises structural modelling approaches
IMF economist builds agent-based banking system model
Model captures diversity of agents and use of rules of thumb
Central banks should test robustness of their main macro models – paper
Researchers warn non-linearities could distort results
Scrap micro-foundations to repair macroeconomics – Steve Keen
Professor says economy should be viewed as a dynamic system
Fed’s Fischer: econometric models are still flawed
US Fed vice-chair says models still cannot capture complexities of economy
Poloz considers the future of economic modelling
Theoretical and empirical two-pronged approach likely to stay, governor says
RBNZ paper sheds light on core macro model
Model features a DSGE core augmented with additional equations
Haldane turns to other disciplines to solve big economic questions
BoE chief economist calls for interdisciplinary approach