Federal Reserve Bank of Atlanta CQER Working Paper No. 10-02
94 Pages Posted: 23 Sep 2010
Date Written: August 2010
Monetary DSGE models are widely used because they fit the data well and 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 paper describes and implements Bayesian moment matching and impulse response matching procedures for this purpose.
Keywords: Taylor rule, labor supply, boom, output gap, unemployment, Bayesian inference, vector autoregression, posterior distribution
JEL Classification: E2, E3, E5, J6
Suggested Citation: Suggested Citation
Christiano, Lawrence J. and Trabandt, Mathias and Walentin, Karl, DSGE Models for Monetary Policy Analysis (August 2010). Federal Reserve Bank of Atlanta CQER Working Paper No. 10-02. Available at SSRN: https://ssrn.com/abstract=1680621 or http://dx.doi.org/10.2139/ssrn.1680621