Macroeconometric equivalence, microeconomic dissonance, and the design of monetary policy

A-Tier
Journal: Journal of Monetary Economics
Year: 2008
Volume: 55
Issue: Supplement 1
Pages: S48-S62

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Macroeconometric equivalence means that estimates of DSGE models using first-order approximations to equilibrium conditions fail to distinguish between alternative preference/technology configurations. Microeconomic dissonance means that the underlying microeconomic differences between ostensibly equivalent models become important when optimal monetary policy is derived. The relevance of these concepts is established by analysis of optimal monetary policy using a small-scale New Keynesian model. Microeconomic and financial datasets are promising tools with which to overcome the equivalence/dissonance problem.

Technical Details

RePEc Handle
repec:eee:moneco:v:55:y:2008:i:s1:p:s48-s62
Journal Field
Macro
Author Count
4
Added to Database
2026-01-25