This note shows that the Svensson versus McCallum and Nelson controversy battled in the Federal Reserve Bank of St. Louis Review (September/ October 2005) can be mapped into a static version of a New Keynesian macro model that consists of an IS-equation, a Phillips curve and an inflation...

In this paper we quantitatively evaluate the hypothesis that the Great Moderation is partly the result of a less activist monetary policy. We simulate a New Keynesian model where the central bank can only observe a noisy estimate of the output gap and fnd that the less pronounced reaction of the...

This paper employs a New Keynesian DSGE model to explore the role of banks within the cost channel of monetary policy transmission for shaping the interest rate pass-through from money market rates to loan rates. Banks extend loans to firms in an environment of monopolistic competition by...

Zusammenfassung Svensson auf der einen und McCallum und Nelson auf der anderen Seite haben in einer Reihe von Beiträgen kontrovers diskutiert, an welcher geldpolitischer Regel sich eine Notenbank orientieren sollte (vgl. Svensson, L., 2003a, 2003b, 2005, Svensson L., u. Woodford, M. 2005)....