We propose an approach to estimating structural models in which the central bank holds the policy rate fixed for an extended period of the estimation sample. Embedding this policy in a version of the Smets and Wouters (2007) model that incorporates information from the yield curve to help with...

This paper derives a fifth-order perturbation solution to DSGE models. The paper develops a new notation that reduces the notational complexity of high-order solutions and yields a faster code. The new notation consists of new matrix forms of high-order multivariate chain rules and a new...