A DSGE Model Including Trend Information and Regime Switching at the ZLB

Paolo Gelain and Pierlauro Lopez

No 23-35, Working Papers from Federal Reserve Bank of Cleveland

Abstract: This paper outlines the dynamic stochastic general equilibrium (DSGE) model developed at the Federal Reserve Bank of Cleveland as part of the suite of models used for forecasting and policy analysis by Cleveland Fed researchers, which we have nicknamed CLEMENTINE (CLeveland Equilibrium ModEl iNcluding Trend INformation and the Effective lower bound). This document adopts a practitioner's guide approach, detailing the construction of the model and offering practical guidance on its use as a policy tool designed to support decision-making through forecasting exercises and policy counterfactuals.

Keywords: DSGE model; labor market frictions; zero lower bound; trends; expectations (search for similar items in EconPapers)
JEL-codes: D58 E23 E31 E32 E52 (search for similar items in EconPapers)
Pages: 54
Date: 2023-12-27
New Economics Papers: this item is included in nep-ban, nep-cba, nep-cmp, nep-dge and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwq:97525

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DOI: 10.26509/frbc-wp-202335

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