Uncertainty about future economic and climate conditions substantially affects the choice of
policies for managing interactions between the climate and the economy. We develop a …

We study optimal interest-rate policy in a New Keynesian model in which the economy is at
risk of experiencing a financial crisis and the probability of a crisis depends on credit …

We evaluate the Smets–Wouters New Keynesian model of the US postwar period, using
indirect inference, the bootstrap and a VAR representation of the data. We find that the …

From the market microstructure perspective, technical analysis can be profitable when
informed traders make systematic mistakes or when uninformed traders have predictable …

The choice between targeting headline and core inflation is crucial in times of large supply
shocks. We investigate this issue in a multi-sector dynamic stochastic general equilibrium …

We explain how to use the composite likelihood function to ameliorate estimation,
computational and inferential problems in dynamic stochastic general equilibrium models …

We consider Sims's (2008) argument that robust policy making requires that policy models
be treated as “probability models”. In a welfare-based setting, we estimate by Bayesian …

This study compares a central bank's leaning against the wind approach with a mix of
monetary and macroprudential policies under parameter uncertainty in an estimated DSGE …

This paper studies the fiscal multiplier using a small-open-economy DSGE model enriched
with financial frictions. It shows that the multiplier is large when frictions are present in …

This paper examines whether misspecification in credit market friction could be costly in the
context of monetary policymaking. Using two widely known dynamic stochastic general …