Dynamic stochastic general equilibrium (DSGE)
Bank of Mexico paper backs credit multiplier as amplification mechanism in DSGE
Working paper finds that credit multipliers do produce the amplification effects expected of them in a DSGE model and are not failing as some suggest
New York Fed paper launches DSGE defence
Staff report says the standard DSGE model produced ‘surprisingly accurate’ forecasts during the financial crisis and subsequent recovery
IMF paper on enhancing DSGE modelling
Fund study identifies benefits from adopting a richer set of data in dynamic stochastic general equilibrium models
BoE paper identifies drivers of energy price volatility
Bank of England study says risk premium and productivity shocks operated in inverse directions on inflation in the UK
ECB paper on alternative DSGE models
European Central Bank study highlights methods to improve macroeconomic forecasts and monetary policy decisions
Phasing in Basel III rules eases economic costs: IMF paper
Fund study shows that implementing higher capital and liquidity requirements over a lengthy period of time can help reduce the macroeconomic costs of enforcing such rules
Capital constraints limits firm productivity: BoE paper
Bank of England study shows recession in United Kingdom limited firms’ ability to finance production costs
Riksbank paper on new DSGE algorithm
Riksbank study documents new forecasting algorithm for monetary policy model
Riksbank on its econometric model Moses
Riksbank study documents simulations using central bank’s econometric model Moses
Philly Fed reviews DSGE models
Philadelphia Federal Reserve study examines mis-specification of money-demand shocks in dynamic stochastic general equilibrium models
Bank of Canada to government: cut tax, don’t spend
Bank of Canada study shows tax cuts are better than government spending for boosting the economy
Finland identifies source of business-cycle volatility in Hong Kong
Bank of Finland study says loan-to-value ratio and housing preference shocks are main source driving business cycle volatility in Hong Kong
CEPR finds bias in fiscal forecasting model
Centre for Economic Policy Research study shows that failure to incorporate changing preferences when modeling fiscal forecasts may create inaccurate predictions
Azerbaijan to move to DSGE model
National Bank of Azerbaijan will switch to consolidated DSGE framework by year-end; deputy research director says model valued for overall coherence and ability to factor in irrational behaviour