The Great Depression in Belgium from a Neoclassical Perspective
Disciplines
Article
English
ID: <
http://hdl.handle.net/2078.1/117713>
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 à la Taylor is able to account reasonably well for most of the data on the Depression, but it overestimates real wages.