An important recent advancement in macroeconomics is the development of dynamic stochastic general equilibrium (DSGE) macromodels. The use of DSGE models to study monetary policy, however, has led to paradoxical and puzzling results on a number of central monetary issues including price...

The goal of this article is to show that the introduction of nominal rigidities into dynamic stochastic general equilibrium models allows to substantially improve the capacities of these models to reproduce the dynamic evolution of real economies. For that purpose we construct a dynamic model...

We construct in this paper a "benchmark" model of fluctuations with optimizing households and firms. The economy is a monetary one, with imperfect competition in goods and labor markets, as well as increasing returns to scale and specialization. This economy is subject to technological and...

We construct in this article a macroeconomic model of unemployment with imperfect competition (based on objective demand curves) and rational expectations, and we study its characteristics, in order notably to compare them with those of usual Keynesian and Walrasian macroeconomic models. We...

It has often been found difficult to generate a liquidity effect (i.e., a negative effect of monetary injections on the nominal interest rate) in the traditional "Ricardian" stochastic dynamic model with a single infinitely lived household. We show that moving to a non-Ricardian environment...