In this paper, we introduce the procedure of a specification test for linear dynamic stochastic general equilibrium (DSGE) models. Given a parameterized DSGE model, we can empirically find omitted variables and check whether the model's structure is correct. -- DSGE model ; specification test

In this short study, we use a simple new Keynesian model and carry out a closed-form analysis to observe the effects of anticipated monetary policy. For the assumed parameter space, we find that while an anticipated monetary easing always has inflationary effects, the effects on output depend on...

This article aims to review the monetary policy rule under inflation targeting framework focusing on Mongolia. The empirical analysis estimates the policy reaction function to see if the inflation targeting has been linked with a monetary policy rule emphasizing on inflation stabilization since...