The ECB has been at the frontier of developing and estimating structural models for policy analysis. Models such as Smets-Wouters8 and the New AreaWide Model9 (NAWM) have played an important role in policy analysis (for example, in policy-making under the zero lower bound for nominal interest rates and the effectiveness of  5  Keynes J.M.
(1936): The General Theory of Unemployment, Interest and Money, Chapter 24, paragraph 5. 6  Seminal contributions include: Fisher, I. (1933): The Debt-Deflation Theory of Great Depressions, Econometrica; Bernanke, B. and Gertler, M. (1989): Agency costs, Net Worth, and Business Fluctuations, American Economic Review, vol. 79, 1; Kiyotaki, N. and Moore, J. (1997): Credit Cycles, Journal of Political Economy, vol.