Barthélemy, J.; Marx, M.; Poissonnier, A. - Banque de France - 2009
We analyze the euro area business cycle in a medium scale DSGE model where we assume two stochastic trends: one on … total factor productivity and one on the inflation target of the central bank. To justify our choice of integrated trends … estimation's historical reading of the business cycle in the euro area. This estimation gives credible explanations of major …