Using a two-sector estimated DSGE model with a financial channel we show the sector where TFP news arrives matters for …

exchange rates and stock prices. On the other hand we model the relationship between these two series through a DSGE model … information from the financial markets. The second rule follows a backward looking approach. We find that when DSGE agents … volatility of these markets. The simulated series replicate the stylized facts of real data. We also estimate the DSGE and …

, General Equilibrium (DSGE) models based on micro-foundations of optimising representative agents with rational expectations …. We argue that the dominance of this particular sort of DSGE and the resistance of some in the profession to alternatives …