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subsequent recovery in the US. The Great Recession was mainly caused by a large demand shock and by the ZLB on the interest rate …
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-economy DSGE model with monetary and fiscal policy as well as financial markets in a continuous-time framework based on stochastic … country where the financial shock originates is no longer as easy and, in terms of prices, there is now deflation in the …
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. Consistent with the predictions from our hypothesis we find: Monetary policy shock estimates obtained from New Keynesian DSGE … hypothesise that New Keynesian DSGE models that do not feature powerful financial spillover channels confound the effects of … data on monetary policy shock estimates for 29 economies obtained from more than 280 monetary models in the literature …
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We develop a dynamic stochastic full equilibrium New Keynesian model of two open economies based on stochastic differential equations to analyse the interdependence between monetary policy and financial markets in the context of the recent financial crisis. The effect of bubbles on stock and...
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