Dynamic stochastic general equilibrium (DSGE) models are in wide use yet have come under sharp criticism, given their complex nature and the assumptions they rely on. However, many central banks use them in policy analysis. Is this a misguided use of economists’ and policy makers’ time? This eBook reviews the use of DSGE models in policy institutions, the lessons learned, and the desirable ways forward.
In April, the €-coin indicator fell for the second consecutive month, to 0.67 from 0.72 in March, nonetheless remaining at a cyclically high level.
CEPR Discussion Papers 23 April 2017
CEPR Discussion Papers 16 April 2017
Dave Donaldson wins the 2017 John Bates-Clark Medal for a significant contribution to economics, presented by the American Economics Association