We study the drivers of fluctuations in the Irish housing market by developing and estimating a dynamic stochastic general equilibrium (DSGE) model of Ireland as a member of the European Economic Monetary Union (EMU). We estimate the model with Bayesian methods using time series for both Ireland...

We challenge the view that the negative correlation between the Federal Funds and the Euler equation interest rate is linked to monetary policy. Using Monte Carlo experiments, we show that the negative correlation can be explained by risk premium disturbances.

Can monetary policy trigger pronounced boom-bust cycles in house prices and create persistent business cycles? We address this question by building heuristics into an otherwise standard DSGE model. As a result, monetary policy sets off waves of optimism and pessimism (“animal spirits”) that...

Can monetary policy trigger pronounced boom-bust cycles in house prices and create persistent business cycles? We address this question by building heuristics into an otherwise standard DSGE model. As a result, monetary policy sets off waves of optimism and pessimism ('animal spirits') that...

Svensson auf der einen und McCallum und Nelson auf der anderen Seite haben in einer Reihe von Beiträgen kontrovers diskutiert, an welcher geldpolitischer Regel sich eine Notenbank orientieren sollte (vgl. Svensson, L., 2003a, 2003b, 2005, Svensson L., u. Woodford, M. 2005). Hierbei plädiert...

We analyze the influence of the fiscal position on the transmission of government spending shocks in a New Keynesian model. We find that once we allow for positive levels of government debt in the steady state, the size of the fiscal multiplier depends strongly on the horizon at which the...

In this paper we evaluate the hypothesis that the Great Moderation is partly the result of a less activist monetary policy. We simulate a New Keynesian model in which the central bank can only observe a noisy estimate of the output gap and find that the less pronounced reaction of the Federal...