There appears to be a disconnect between the importance of the zero bound on nominal interest rates in the real-world and predictions from quantitative DSGE models. Recent economic events have reinforced the relevance of the zero bound for monetary policy whereas quantitative models suggest that...

In this paper, we offer one possible way to estimate a key feature of the Bank of Canada s main macroeconomic model, the Quarterly Projection Model or QPM. The key feature which is the focus of this study is the so-called short-run equilibrium values or SREQs which link the dynamic portion of...