Comments on “Monetary policy rules and exchange rate flexibility in a simple dynamic general equilibrium model”

2004 ◽  
Vol 26 (2) ◽  
pp. 309-313
Author(s):  
Fabio Ghironi ◽  
Kolver Hernandez
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Dynamic General Equilibrium ◽  
General Equilibrium Model ◽  
Exchange Rate Flexibility ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
Dynamic General Equilibrium Model

Risk Shocks

2014 ◽  
Vol 104 (1) ◽  
pp. 27-65 ◽  
Author(s):  
Lawrence J. Christiano ◽  
Roberto Motto ◽  
Massimo Rostagno
Keyword(s):  
Business Cycle ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Dynamic General Equilibrium ◽  
General Equilibrium Model ◽  
Cross Sectional ◽  
Dynamic General Equilibrium Model ◽  
The Business Cycle ◽  
Idiosyncratic Uncertainty ◽  
Over Time

We augment a standard monetary dynamic general equilibrium model to include a Bernanke-Gertler-Gilchrist financial accelerator mechanism. We fit the model to US data, allowing the volatility of cross-sectional idiosyncratic uncertainty to fluctuate over time. We refer to this measure of volatility as risk. We find that fluctuations in risk are the most important shock driving the business cycle. (JEL D81, D82, E32, E44, L26)

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