Volume 6, Issue 1 March 2010

Using Models for Monetary Policy Analysis

Abstract

Modern policy analysis makes extensive use of dynamic stochastic general equilibrium (DSGE) models. These models differ significantly from earlier generations of large-scale econometric models. I review what I see as major progress in the ability of economists to conduct model-based policy analysis. This progress has come through the evolution in the types of models being used and in a refinement of the types of questions asked of these models.

Authors

  • Carl E. Walsh

JEL codes

  • E17
  • E52
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Commentary on Policy at the Zero Lower Bound

Christopher A. Sims

Policies to Rebalance the Global Economy After the Financial Crisis

Charles Freedman and Michael Kumhof and Douglas Laxton and Dirk Muir

Introduction

Giancarlo Corsetti and Andrew Lewin and Frank Smets and Carl Walsh

Cross-Border Spillovers from Fiscal Stimulus

Giancarlo Corsetti and André Meier and Gernot J. Müller

Fiscal Stimulus and the Promise of Future Spending Cuts

Volker Wieland

Has Globalization Changed the Phillips Curve? Firm-Level Evidence on the Effect of Activity on Prices

Eugenio Gaiotti

Inflation Pressures and Monetary Policy in Global Economy

Jordi Galí

The Zero Lower Bound and Monetary Policy in a Global Economy: A Simple Analytical Investigation

Ippei Jujiwara and Nao Sudo and Yuki Teranishi

Limitations on the Effectiveness of Forward Guidance at the Zero Lower Bound

Andrew Levin and David López-Salido and Edward Nelson and Tack Yun