Minford, Patrick; Ou, Zhirong; Wickens, Michael - In: Open Economies Review 26 (2015) 2, pp. 197-223
We investigate the relative roles of monetary policy and shocks in causing the Great Moderation, using indirect inference where a DSGE model is tested for its ability to mimic a VAR describing the data. A New Keynesian model with a Taylor Rule and one with the Optimal Timeless Rule are both...