This is a book on stochastic dynamic macroeconomics from a Keynesian perpective. It shows that including Keynesian features in intertemporal models considerably contributes to resolve major puzzles arising in the context of the Dynamic General Equilibrium (DGE) model. It also demonstrates that...

We estimate a dynamic, intertemporal optimisation model that mimics features of European labour markets, such as sticky nominal wages and sluggish adjustment of employment to shocks for 15 OECD countries. The estimates include a measure for the degree of labour market sluggishness that compares...

Germany will be one of the core countries in the European Monetary Union (EMU). Currently there is therefore a great interest in issues of labor market and monetary policy in Germany. On the basis of a macroeconometric model we study the interaction of labor market and alternative monetary...

In this paper we extend an integrated closed-economy macrodynamic model to account for a large open economy in a currency area with fixed nominal exchange rates between the currencies. The major issues are the effectiveness and macrodynamic effects of monetary policy for countries in a pegged or...

In the framework of a Keynesian based monetary macromodel we study the implications of alternative monetary policy rules. Our monetary macromodel exhibits the following features: asset market clearing, disequilibrium in the product and labor markets, sluggish price and quantity adjustments, two...

We estimate a dynamic, intertemporal optimisation model that mimics features of European labour markets, such as sticky nominal wages and sluggish adjustment of employment to shocks for 15 OECD countries. The estimates include a measure for the degree of labour market sluggishness that compares...