Software that models human behaviour can make forecasts, outfox rivals and transform negotiations…..
Modelling behaviour: Game theory in practice, The Economist, 3 Sep 2011
Nostalgia ain’t what it used to be….
The Monetary Base, IS-LM, And All That (Very Nerdy), Paul Krugman, NY Times, 23 Aug 2013
The Microfoundation Thing (Wonkish), NY Times, 2 Mar 2012
Ah Yes, LM, NY Times, 8 Oct 2011
Greg Mankiw blog, 8 Oct 2011 and his fuller May 2006 entry
IS-LMentary, NY Times, 9 Oct 2011 Continue reading IS-LM Models
The FRBNY authors present and estimate a simple New Keynesian DSGE model, highlighting the core features that this basic specification shares with more elaborate versions. They then apply the estimated model to study the sources of the sudden increase in US inflation that occurred in the first half of 2004.
One important lesson derived from this exercise is that the management of expectations can be a more effective tool for stabilizing inflation than actual movements in the policy rate.
This result is consistent with the increasing use of forward guidance by central banks.
Policy Analysis Using DSGE Models: An Introduction, FRB New York, Oct 2010
In the midst of crisis, an academic convergence?…
The State of Macro, Olivier Blanchard, NBER Working Paper 14259, Aug 2008