, and much lower for the usual preferences (in which only inflation and/or output stabilization matter). It is shown that …

quantitative macroeconomics. However, DSGE models were not considered as a forecasting tool until very recently. The objective of … this paper is twofold. First, we compare the forecasting ability of a canonical DSGE model for the Spanish economy with … VAR operates with artificial series obtained from a DSGE model. The results indicate that the out-of-sample forecasting …

subsequent real activity and inflation. Some of these relationships are highly significant, but their theoretical motivations … empirical relationships are in fact stable. We consider continuous models, which predict either economic growth or inflation … Germany and the United States. Models that predict real activity are more stable than those that predict inflation, and binary …

learning mechanism describes agents' perception on underlying inflation. This creates an additional inertia in inflation. We …