Erdemlioglu, Deniz M; Xiao, Wei - Volkswirtschaftliche Fakultät, … - 2008
This paper tests “Bad Policy” Hypothesis which refers to the Great Moderation in the US. We examine this hypothesis by simulating model based impulse response functions for the both pre-Volcker period and post 1982 period. Deriving and simulating standard New Keynesian DSGE Model explicitly,...