A Graphical Representation of an Estimated DSGE Model

Mariano Kulish and Callum Jones

No 3, Dynare Working Papers from CEPREMAP

Abstract: We write a New Keynesian model as an aggregate demand curve and an aggregate supply curve, relating inflation to output growth. The graphical representation shows how structural shocks move aggregate demand and supply simultaneously. We estimate the curves on US data from 1948 to 2010. The Great Recession in 2008-09 is explained by a collapse of aggregate demand driven by adverse preference and permanent technology shocks, and expectations of low inflation.

JEL-codes: E27 E37 E58 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2011-05
New Economics Papers: this item is included in nep-cba, nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: A graphical representation of an estimated DSGE model (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cpm:dynare:003

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