Advanced
Dynamic Stochastic General Equilibrium Modeling
Advanced economic forecasting using DSGE models.
📝 Treść promptu
Construct a Dynamic Stochastic General Equilibrium (DSGE) model to analyze the transmission mechanisms of a negative supply shock in a small open economy. Derive the Euler equations for consumption and investment, and calibrate the model using Bayesian estimation techniques. Discuss the implications of the Zero Lower Bound (ZLB) on monetary policy effectiveness within your model's framework.