We build a fully micro-founded dynamic general equilibrium (DSGE) model, which is estimated employing Bayesian methods. The model captures the most salient features of Austria as a small open economy, the Euro Area (EA) and the United States (U.S.). Further analysis is conducted through...

In this paper we derive a microfounded macro New Keynesian model for open economies, be them large or small. We consider habit formation in consumption, sectoral linkages, domestic and foreign governments, tradable and non-tradable final and intermediate goods and imperfect pass-through in these...

There is no unifying framework for evaluating core inflation measures, so we propose a methodological framework to close this gap. It allows us to construct, evaluate, and rank core inflation measures by applying it to countries and regions with different characteristics, such as Chile,...