Focal Interest
Focal Interest

Dynamic stochastic general equilibrium

  1. Unfunded fiscal shocks were not the main driver of Japan's inflation
    Analysis of how fiscal shocks influenced inflation in Japan over four decades, revealing demand and monetary factors rather than fiscal imbalances as primary drivers.
  2. Why Higher Trend Inflation Makes Monetary Policy More Costly in South Africa
    Fiscal DSGE analysis for South Africa showing higher trend inflation increases costs via price dispersion; lower trend inflation reduces these costs.