In this paper we develop a dynamic stochastic general equilibrium (DSGE) model for an open economy, and estimate it on … Euro area data using Bayesian estimation techniques. The model incorporates several open economy features, as well as a … number of nominal and real frictions that have proven to be important for the empirical fit of closed economy models. The …

This paper uses an estimated open economy DSGE model to examine if constant interest forecasts one and two years ahead …

reference prior distribution with an optional small open economy effect is proposed and a Gibbs sampler is derived for a …

order to stabilize the real economy. A modified Taylor curve, the forecast Taylor curve, showing the tradeoff between the … achieved an efficient stabilization of both inflation and the real economy and what relative weight on the stability of … inflation and the real economy has effectively been applied. Ex ante evaluation may be more relevant than evaluation ex post …

include among the predetermined variables (the "state" of the economy) the vector of nonzero means of future shocks to a given …

economy. We compare the properties and outcomes of explicit "instrument rules" as well as "targeting rules". The latter, which …