There was a time - only a few years back - people used to go to the banks and the staff treated them shabbily, was generally uncooperative and unfriendly. Now, they are after the customers. Cynics say that banking reforms are also promoting consumerism but when you give loan to a consumer, he goes and buys a car.
This is also the case for the DSGE model developed in the Directorate General Research, the New Area-Wide Model, is regularly used for counterfactual policy analysis.7 At the same time, a good fit of the data is to some extent accomplished by DSGE models through persistent shock processes, which questions the empirical validity of the model’s intrinsic propagation mechanisms.