Because of limited knowledge about how the actual, complex economy operates, policymakers depend on models for … fluctuations or shocks in the actual economy are often driven by developments beyond the central bank's control. There are no … of the economy. How good a model is depends on particular criteria. ; This article assesses the usability of a specific …

better benchmark for macroeconomists to test their DSGE models for the Euro economy. …

experiments or theories lead to different conclusions. The actual economy, however, is not the result of any such controlled … of monetary policy requires understanding the interaction among all players in the economy-the central bank, financial …

responses that are inconsistent with existing open economy macroeconomic theory. We argue that a careful identification of … monetary policy in an explicit open economy setting is required. Using Canada as a case study, we specify and estimate a vector … traditional open economy analyses and highlight the importance of the exchange rate as a transmission mechanism. …