Internal consistency, nominal Inertia and the microfoundation of macroeconomics

Microfounded macromodels (SDGE models) represent the dominant approach in academic macroeconomics, and their influence now extends to the forecasting models of central banks. These models appear to adopt a clear methodological approach, which promotes internal consistency above external consistency...

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Bibliographic Details
Main Author: Wren-Lewis, S
Format: Working paper
Published: University of Oxford 2009