Should monetary policy lean against the wind? Simulations based on a DSGE model with an occasionally binding credit constraint
Sign Up to like & getrecommendations! Published in 2020 at "Economic Modelling"
DOI: 10.1016/j.econmod.2019.09.043
Abstract: Abstract In this research paper, we extend the model constructed by Gambacorta and Signoretti (2014) by introducing an occasionally binding credit constraint based on a penalty function approach in line with Brzoza-Brzezina, Kolasa, and Makarski… read more here.
Keywords: credit constraint; model; occasionally binding; binding credit ... See more keywords
FiPIt: A simple, fast global method for solving models with two endogenous states & occasionally binding constraints
Sign Up to like & getrecommendations! Published in 2020 at "Review of Economic Dynamics"
DOI: 10.1016/j.red.2020.01.001
Abstract: We propose a simple and fast fixed-point iteration algorithm (FiPIt) to obtain the global, non-linear solution of macro models with two endogenous state variables and occasionally binding constraints. This method uses fixed-point iteration on Euler… read more here.
Keywords: binding constraints; two endogenous; simple fast; models two ... See more keywords