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CH 14

This document introduces a performance competitive model for aggregate fluctuations without capital accumulation, focusing on a DSGE model that optimizes households and firms under flexible wages and prices. It analyzes the dynamics of shocks on productivity and the role of monetary shocks and policy in this context. The model allows for a comparative analysis with new Keynesian models to understand the implications of aggregate fluctuations on economic performance.

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praroy030
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0% found this document useful (0 votes)
12 views22 pages

CH 14

This document introduces a performance competitive model for aggregate fluctuations without capital accumulation, focusing on a DSGE model that optimizes households and firms under flexible wages and prices. It analyzes the dynamics of shocks on productivity and the role of monetary shocks and policy in this context. The model allows for a comparative analysis with new Keynesian models to understand the implications of aggregate fluctuations on economic performance.

Uploaded by

praroy030
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd




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