Euro area inflation persistence in an estimated nonlinear dsge model

Since the Taylor rule is not linearized in the neighborhood of a specific steady state, the economy contains several long-run steady states and the economy can move away from a

But it is uncomfortable to assess medium term inflation prospects from the informations contained in the monthly bulletin, not only because it does not include a model or a

Because the FED has constitutionally an eye on the growth rate, its room for manœuvre is objectively greater. First these duality of objectives has the great advantage of preventing

Once allowing for structural breaks and therefore not pooling across time, we cannot rule out that inflation has an explosive behaviour in some provinces, which is contrary to

In that case, without the zero lower bound, the optimal policy would trivially be to set the nominal interest rate i t equal to the natural real rate r t n and to leave

By entering real money balances in a non-separable utility function, we introduce an explicit role for money via preference redefinition in a simple New Keynesian Dynamic

We find that differences in labor market institutions (proxied by the replacement rates, or alternatively by a measure of workers’ bargaining power) can generate significant

A massive increase in public spending (UK, U.S.), negative productivity and investment shocks (France, Germany and the UK), a negative world demand shock (France and the UK),