Why Is Mobility In India So Low? Social Insurance, Inequality, And Growth

In this paper the authors investigate the comparative properties of empirically-estimated monetary models of the U.S. economy. They make use of a new data base of models designed for such investigations. They focus on three representative models: the Christiano, Eichenbaum, Evans (2005) model, the Smets and Wouters (2007) model, and the Taylor (1993a) model. Although the three models differ in terms of structure, estimation method, sample period, and data vintage, they find surprisingly similar economic impacts of unanticipated changes in the federal funds rate. However, the optimal monetary policy responses to other sources of economic fluctuations are widely different in the different models.