DSGE models have recently become one of the most frequently used tools in policy analysis. Nevertheless, their … small size DSGE model, a trivariate VAR model and the Philadelphia Fed Survey of Professional Forecasters. The forecast …), to ensure that the information available to the SPF was exactly the same as the data used to estimate the DSGE and VAR …

procyclical real interest rates in EMU. To address this issue, we use a small open economy DSGE model. We compare the FIML …