Outputs (2)

How Optimal is US Monetary Policy? (2017)
Journal Article
Chen, X., Kirsanova, T., & Leith, C. (2017). How Optimal is US Monetary Policy?. Journal of Monetary Economics, 92, 96-111. https://doi.org/10.1016/j.jmoneco.2017.09.009

Using a small-scale microfounded DSGE model with Markov switching in shock variances and policy parameters, we show that the data-preferred description of US monetary policy is a time-consistent targeting rule with a marked increase in conservatism a... Read More about How Optimal is US Monetary Policy?.

An empirical assessment of Optimal Monetary Policy in the Euro area (2017)
Journal Article
Chen, X., Kirsanova, T., & Leith, C. (2017). An empirical assessment of Optimal Monetary Policy in the Euro area. European Economic Review, 100, 95-115. https://doi.org/10.1016/j.euroecorev.2017.07.012

We estimate a New Keynesian DSGE model for the Euro area under alternative descriptions of monetary policy (discretion, commitment or a simple rule) after allowing for Markov switching in policy-maker preferences and shock volatilities. This reveals... Read More about An empirical assessment of Optimal Monetary Policy in the Euro area.