WebThis paper examines the international transmission effects that a positive supply shock in emerging economies may have on inflation in developed economies. We construct a dynamic stochastic general equilibrium (DSGE) model for three countries and analyze the impact of a supply shock in an emerging economy, the People’s Republic of China (PRC), Webcontours our model shares with most DSGE specifications, as transparent as possible. Therefore, the model focuses on the behavior of only three major macroeconomic variables: inflation, GDP growth, and the short-term interest rate. 3Adolfson et al. (2007) offer a more exte nded illustration of how DSGE models

Foreign Output Shocks and Monetary Policy Regimes in …

WebApr 13, 2024 · Inflation: Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. Inflation measures the average price change in a basket of commodities and services over time. The opposite and rare fall in the price index of this basket of ... The chart below shows in red the evolution of the 12-month inflation rate in the Personal Consumption Expenditures (PCE) price index excluding food and energy (core PCE) since 2000. Its recent increase is especially striking against the backdrop of extremely stable inflation around 2 percent in the previous two … See more What factors underlie this surge in inflation? DSGE models are especially useful tools to address this type of question because … See more By including both transitory and persistent pricing shocks, the model encompasses two key narratives that have animated the debate on the sources of inflation over the past year. The first … See more The identification of the factors driving inflation is only as good as the model that produces it, and our model is omitting many relevant … See more We have argued above that our model does not attribute all notable movements in inflation to cost-push shocks by construction. In fact, … See more phelps county water district #2

The Fed - Assessing the Effects of the Zero-Interest-Rate Policy ...

WebMay 13, 2024 · We develop a medium size dynamic stochastic general equilibrium (DSGE) model to assess the macroeconomic consequences of introducing an interest-bearing … Websumption and inflation without several years of data with which to estimate the new reduced-form relationship, whereas a structural model can assess the effects of such changes immediately. Second, structural DSGE models can potentially answer many interesting questions, such as why consumption, inflation, and long-term bond WebDec 10, 2009 · the component of inflation driven solely by the inflation drift term (dashed, black line) that we call “trend.” The role of this shock in picking up low frequency vari … phelps county waynesville mo