Natural Rate Measures in an Estimated DSGE Model of the U.S. Economy

Posted: 2 Jul 2021

See all articles by Rochelle M. Edge

Rochelle M. Edge

Board of Governors of the Federal Reserve System

Michael T. Kiley

Board of Governors of the Federal Reserve System

Jean-Philippe Laforte

Board of Governors of the Federal Reserve System

Multiple version iconThere are 2 versions of this paper

Date Written: 2007

Abstract

This paper presents a monetary DSGE model of the U.S. economy. The model captures the most important production, expenditure, and nominal-contracting decisions underlying economic data while remaining sufficiently small to allow it to provide a clear interpretation of the data. We emphasize the role of model-based analyses as vehicles for storytelling by providing several examples--based around the evolution of natural rates of production and interest--of how our model can provide narratives to explain recent macroeconomic fluctuations. The stories obtained from our model are both similar to and quite different from conventional accounts.

Suggested Citation

Edge, Rochelle M. and Kiley, Michael T. and Laforte, Jean-Philippe, Natural Rate Measures in an Estimated DSGE Model of the U.S. Economy (2007). FEDS Working Paper No. 2007-8, Available at SSRN: https://ssrn.com/abstract=3877815

Rochelle M. Edge (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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Michael T. Kiley

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
202-452-2448 (Phone)
202-452-5296 (Fax)

Jean-Philippe Laforte

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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