Dam, Niels Arne; Linaa, Jesper Gregers - Economic Policy Research Unit (EPRU), Økonomisk Institut - 2005
We decompose the Danish business cycle into ten structural shocks using an open-economy DSGE model with infrequent determination of prices and wages which we estimate with Bayesian techniques. Consistent with the Danish monetary policy regime, we formulate an imperfect peg on the foreign...