Although Ireland has done much already to reduce its government deficit, the scale of the fiscal adjustment required means that there is still some distance to go. In international terms, Ireland's fiscal consolidation will ultimately prove to be one of the largest recorded in the Organisation...

The canonical inflation specification in sticky-price rational expectations models (the new-Keynesian Phillips curve) is often criticized for failing to account for the dependence of inflation on its own lags. In response, many studies employ a “hybrid” specification in which inflation...

This overview examines conditions for reliable economic policy analysis based on econometric models, focusing on the econometric concepts of exogeneity, cointegration, causality, and invariance. Weak, strong, and super exogeneity are discussed in general; and these concepts are then applied to...