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Evaluating a monetary business cycle model with unemployment for the euro area

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  • Nicolas Groshenny

    ()
    (Reserve Bank of New Zealand, Economics department)

Abstract

This paper estimates a medium-scale DSGE model with search unemployment by matching model and data spectra. Price mark-up shocks emerge as the main source of business-cycle fluctuations in the euro area. Key factors in the propagation of these disturbances are a high degree of inflation indexation and a persistent response of monetary policy to deviations from the inflation target

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File URL: http://www.nbb.be/doc/oc/repec/reswpp/wp173En.pdf
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Bibliographic Info

Paper provided by National Bank of Belgium in its series Working Paper Research with number 173.

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Length: 49 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:nbb:reswpp:200907-27

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Keywords: DSGE models; business cycles; frequency-domain analysis;

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Cited by:
  1. Christiano, Lawrence J. & Trabrandt, Mathias & Walentin, Karl, 2010. "Involuntary Unemployment and the Business Cycle," Working Paper Series 238, Sveriges Riksbank (Central Bank of Sweden), revised 01 Jun 2012.
  2. Lawrence J. Christiano & Mathias Trabandt & Karl Walentin, 2010. "DSGE models for monetary policy analysis," CQER Working Paper 2010-02, Federal Reserve Bank of Atlanta.
  3. Nicolas Groshenny, 2010. "Monetary policy, inflation and unemployment. In Defense of the Federal Reserve," 2010 Meeting Papers 676, Society for Economic Dynamics.

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