Expectations in a Baseline DSGE Closed Economy Model
| Authors | |
|---|---|
| Year of publication | 2009 |
| Type | Article in Proceedings |
| Conference | Mathematical Methods in Economics 2009 |
| MU Faculty or unit | |
| Citation | |
| Field | Economy |
| Keywords | Expectations; DSGE model; anticipated shocks |
| Description | In our contribution, we analyze fully anticipated shocks in a medium-scale closed economy DSGE model a compare them to unanticipated shocks. An anticipated shock might bring about significant adjustments of agents' behavior before time when a shock hits the economy. From a practical policy side, modelling of anticipated shocks can be a useful tool for a policy forecasting since we admit relevance of rational expectations in reality. |
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