95 Pages Posted: 14 Jun 2010
Date Written: June 2010
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.
Suggested Citation: Suggested Citation
Christiano, Lawrence J. and Trabandt, Mathias and Walentin, Karl, DSGE Models for Monetary Policy Analysis (June 2010). NBER Working Paper No. w16074. Available at SSRN: https://ssrn.com/abstract=1624115