BibTeX
@MISC{_generaldiscussion,
author = {},
title = {GENERAL DISCUSSION},
year = {}
}
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Abstract
Sukudhew Singh (Central Bank of Malaysia) asked whether the models used at central banks did not lead to policy myopia, in the sense that what was not in the models became invisible to policy-makers. Second, he expressed concern that it is difficult for economists and policy-makers to change the paradigm they are used to in the face of new facts and circumstances. Eichenbaum answered that an image of a policy-maker looking only at a single New Keynesian DSGE model is a caricature. Policy institutions use many different models simultaneously. A model is merely a way to quantify a point of view. As for responding to new facts, he agreed with Keynes ’ recipe: “When the facts change, I change my mind – what do you do, sir?” Klaus Adam (Mannheim University) referred to the research program of integrating asset pricing and macro models. Many of these models, including the Bernanke-Gertler approach, are incapable of reproducing even the very basic asset pricing facts and have to resort to added exogenous bubble components. What mechanisms can provide endogenous propagation to integrate macro
Keyphrases
general discussion central bank new fact klaus adam research program exogenous bubble component policy myopia macro model mannheim university asset pricing single new keynesian dsge model many different model basic asset pricing fact bernanke-gertler approach keynes recipe sukudhew singh policy institution endogenous propagation
