DSGE models

Publication date: 17 Aug 2009 | Publication type: NIESR Discussion Paper | Authors: Mitchell, J | External authors: Bache, I.W., Ravazzolo, F., Vahey, S.P. | NIESR discussion paper number: 337
We argue that the next generation of macro modellers at Inflation Targeting central banks should adapt a methodology from the weather forecasting literature known as `ensemble modelling'. In this approach, uncertainty about model specifications (e.g., initial conditions, parameters, and...