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Clarida-Gali-Gertler Model Overview by Martin Zapata is a document available to read on EtoBox.

This document provides a tutorial on forecasting, output gap estimation, DSGE model estimation, and the MCMC algorithm using Dynare. It includes: 1) Equations for the Clarida-Gali-Gertler model, including the Calvo pricing equation, intertemporal equation, and policy rule. 2) Details on household preferences, budget constraints, production technology, and price-setting frictions in the model. 3) Explanation of how the Ramsey equilibrium corresponds to the flexible-price optimal policy equilibrium with

Author

Martin Zapata

Language

EN