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Dynamic equilibrium models are specifted to track time series with unit root-like behavior. Thus, unit roots are typically introduced and the optimality conditions adjusted. This step requires tedious algebra and often leads to algebraic mistakes, especially in models with several unit roots. We...
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Foreign driven medium-term oscillations that originate from uctuations in technological frontier countries gained widespread attention among policymakers. To study this phenomenon in the context of domestic and other foreign drivers of the euro area business cycle, we develop a medium-scale,...
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Inflation forecasts are a key ingredient for monetary policy-making -- especially in an inflation targeting country … variables. As such, other variables, e.g. such as alternative measures of inflation that might be of interest to policymakers … inflation variables (both core and non-modeled) in comparison with forecasts reported by other models such as AR(1) …
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Over the last two centuries, the cross-spectral coherence between either narrow or broad money growth and inflation at … other countries, thus implying that the fraction of inflation's long-run variation explained by long-run money growth has … systematic velocity shocks and infrequent inflationary outbursts. Based on estimated DSGE models, I show that velocity shocks …
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Over the last two centuries, the coherence between either narrow or broad money growth and inflation at zero has … that the fraction of inflation's long-run variation explained by long-run money growth has been very high and relatively … outbursts associated with World War I and the Great Inflation - but not World War II - whereas following the disinflation of the …
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