-Wouters model and its forecasts of real GDP growth and inflation are compared with those from two extensions. The first adds … extensions improve the density forecasts of real GDP and inflation and their joint forecasts up to an eight-quarter horizon. We … find that adding financial frictions leads to a deterioration in the forecasts, with the exception of longer-term inflation …

response of the interest rate to changes in sectoral inflation due to standard supply shocks, conditional on a given … environmental policy. We then compare the performance of a nonstandard monetary rule with sectoral inflation targets to that of a … sectors. Second, compared with a standard Taylor rule targeting aggregate inflation, a monetary policy rule with asymmetric …

effects of a novel macroprudential policy rule - that I shall call Dividend Prudential Target (DPT) - aimed at complementing …