Hayo, Bernd; Niehof, Britta - Volkswirtschaft Abteilung, Fachbereich … - 2014
To analyse the interdependence between monetary and fiscal policy during a financial crisis, we develop an open …-economy DSGE model with monetary and fiscal policy as well as financial markets in a continuous-time framework based on stochastic … differential equations. Monetary policy is modelled using both a standard and a modified Taylor rule and fiscal policy is modelled …