Castelnuovo, Efrem - Dipartimento di Scienze Economiche "Marco Fanno", … - 2012
The role of trend inflation shocks for the U.S. macroeconomic dynamics is investigated by estimating two DSGE models of the business cycle. Policymakers are assumed to be concerned with a time-varying inflation target, which is modeled as a persistent and stochastic process. The identification...