Working Paper

A DSGE Model Including Trend Information and Regime Switching at the ZLB

Abstract: This paper outlines the dynamic stochastic general equilibrium (DSGE) model developed at the Federal Reserve Bank of Cleveland as part of the suite of models used for forecasting and policy analysis by Cleveland Fed researchers, which we have nicknamed CLEMENTINE (CLeveland Equilibrium ModEl iNcluding Trend INformation and the Effective lower bound). This document adopts a practitioner's guide approach, detailing the construction of the model and offering practical guidance on its use as a policy tool designed to support decision-making through forecasting exercises and policy counterfactuals.

Keywords: DSGE model; labor market frictions; zero lower bound; trends; expectations;

JEL Classification: E32; E23; E31; E52; D58;

Access Documents

File(s): File format is text/html
Description: Persistent Link


Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers

Publication Date: 2023-12-27

Number: 23-35