The Great Depression in Belgium from a Neoclassical Perspective

This article casts the Belgian Great Depression of the 1930s within a dynamic stochastic general equilibrium (DSGE) framework. The results show that a DSGE model with total factor productivity and monetary shocks, coupled with sticky nominal wages a la Taylor is able to account reasonably well for m...

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Bibliographic Details
Published inReview of Economic Dynamics Vol. 14; no. 2; pp. 389 - 402
Main Author Pensieroso, Luca
Format Journal Article
LanguageEnglish
Published Elsevier for the Society for Economic Dynamics 2011
SeriesReview of Economic Dynamics
Subjects
Belgium
Dynamic stochastic general equilibrium
Great Depression
Sticky wages
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Summary:This article casts the Belgian Great Depression of the 1930s within a dynamic stochastic general equilibrium (DSGE) framework. The results show that a DSGE model with total factor productivity and monetary shocks, coupled with sticky nominal wages a la Taylor is able to account reasonably well for most of the data on the Depression, but it overestimates real wages. (Copyright: Elsevier)