This 2011 Handbook of Monetary Economics chapter is a selective survey and original empirical estimation of medium-scale New Keynesian DSGE models for monetary policy analysis. It first works through …
Embedding the Kydland-Prescott/Barro-Gordon time-inconsistency logic into a standard sticky-price, cash-credit-goods general equilibrium model, this paper shows the model generically has either two …
Estimated New Keynesian models reconcile inertial inflation with Calvo pricing only by forcing firms to re-optimise prices once every two years or more, which micro price data contradict. Making …
This chapter in the 1999 Handbook of Macroeconomics (Volume 1) by Lawrence Christiano, Martin Eichenbaum, and Charles Evans surveys and unifies the VAR-based literature on identifying monetary policy …
This 2005 Journal of Political Economy paper by Christiano, Eichenbaum, and Evans (CEE) builds and estimates a general-equilibrium model to answer a specific question: what combination of frictions …
PublishedClassicJournal of Economic PerspectivesPublished Aug 2018
This 2018 Journal of Economic Perspectives essay by Lawrence Christiano, Martin Eichenbaum, and Mathias Trabandt is a perspective/survey defense of dynamic stochastic general equilibrium (DSGE) …
PublishedClassicQuarterly Review (Federal Reserve Bank of Minneapolis)Published Dec 1996
Investment projects begin with a long planning phase that consumes very little in the way of resources, and building that phase into an otherwise standard real business cycle model delays the response …