There are a lot of DSGE models that haven't debts control elements. Debts often set to zero. Two modification of small closed DSGE model is created (with independent central bank and with joint budget). Each modification has debts control elements at monetary policy and fiscal policy....

In this paper, we test two models of the Eurozone, with a special emphasis on the role of money and monetary policy during crises. The role of separability between money and consumption is investigated further and we analyse the Euro area economy during three different crises: 1992, 2001 and...

Optimal monetary policy under discretion, commitment, and optimal simple rules regimes is analyzed through a behavioral New Keynesian model. Flexible price level targeting dominates under discretion; flexible inflation targeting dominates under commitment; and strict price level targeting...