DSGE Models and Central Banks

  title={DSGE Models and Central Banks},
  author={Camilo Ernesto Tovar},
  • C. Tovar
  • Published 6 May 2009
  • Economics
  • Economics
Abstract Over the past 15 years there has been remarkable progress in the specification and estimation of dynamic stochastic general equilibrium (DSGE) models. Central banks in developed and emerging market economies have become increasingly interested in their usefulness for policy analysis and forecasting. This paper reviews some issues and challenges surrounding the use of these models at central banks. It recognises that they offer coherent frameworks for structuring policy discussions… 
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