Stochastic General Equilibrium (DSGE) models are the leading framework that macroeconomists have for dealing with this challenge … in an open and transparent manner. This paper reviews the state of DSGE models before the financial crisis and how DSGE … modelers responded to the crisis and its aftermath. In addition, we discuss the role of DSGE models in the policy process …

Recent work has analyzed the forecasting performance of standard dynamic stochastic general equilibrium (DSGE) models …, but little attention has been given to DSGE models that incorporate nonlinearities in exogenous driving processes. Against … that background, we explore whether incorporating stochastic volatility improves DSGE forecasts (point, interval, and …

Monetary DSGE models are widely used because they fit the data well and they can be used to address important monetary … policy questions. We provide a selective review of these developments. Policy analysis with DSGE models requires using data …

This paper considers VAR models incorporating many time series that interact through a few dynamic factors. Several … imposed on the VAR. Structural VAR identification based on timing restrictions, long run restrictions, and restrictions on …

preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in …

We dissect the comovement patterns of the macroeconomic data, identify a single shock that accounts for the bulk of the … that leading DSGE models seem to lack the propagation mechanism observed in the data …

While dynamic stochastic general equilibrium (DSGE) models for monetary policy analysis have come a long way, there is … points about assessing the value of these models. First, we document that DSGE models continue to have aspects of crude … analysis in the DSGE context against long-standing objections. We use the iconic Smets-Wouters model for illustrative purposes …