Resumen de Business Cycle and Monetary Policy Analysis in a Structural Sticky-Price Model of the Euro Area
Structural models are a powerful tool for business cycle and monetary policy analysis because they are assumed to be invariant to either policy changes or external shoxks. In this paper, we derive a neoclassical monetary model in which both the demand and supply side are setructural in the sense that the behavioral equations obtaind are regorously calculated from optimizing decisions of the individuals. Moerover, we introduce price stickiness on the supply side decisions so as to have relevant short-run real effects of monetary policy through the rreal interest rate channel. The resulting medium-size model will be calibrated and estimated for the euro area economies. As two examples of the applications of the model for the euro area, some simulations on business cycle and monetary policy analysis will be carried out.
