In the stylized DSGE model, the variable that allows future events to affect the economy today is inflation expectation.

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In the stylized DSGE (Dynamic Stochastic General Equilibrium) model, the variable that allows future events to affect the economy today is typically the expectation of future economic variables, such as future income, interest rates, or technology, rather than inflation expectation alone. Inflation expectations can influence the economy, but they are not the sole variable for future events' impact in DSGE models.

In the Stylized DSGE Model, the Variable That Allows Future