We build four different dynamic stochastic general equilibrium (DSGE) models for a small open economy reflecting both neoclassical and Keynesian specifications. A DSGE model with full price and wage flexibility is initially constructed and then modified through nominal wage and price rigidities. The ability of the models to replicate important features of the business cycle activity in the UK is explored through statistical and econometric analysis. Evidence suggests that a monetary shock under the Taylor model with price stickiness can replicate a significant portion of the business cycle activity in the UK economy.

中文翻译：

---

1974–2017年英国经济的DSGE建模

我们为反映新古典主义和凯恩斯主义规范的小型开放经济建立了四个不同的动态随机一般均衡（DSGE）模型。首先建立具有全部价格和工资灵活性的DSGE模型，然后通过名义工资和价格刚性对DSGE模型进行修改。通过统计和计量经济分析，探索了模型复制英国商业周期活动重要特征的能力。有证据表明，泰勒模式下的价格冲击导致的货币冲击可以复制英国经济中商业周期活动的很大一部分。