A Stochastic, Monetary Equilibrium Model of the Interest Rate
Title | A Stochastic, Monetary Equilibrium Model of the Interest Rate PDF eBook |
Author | Alfonso Novales |
Publisher | |
Pages | 58 |
Release | 1985 |
Genre | Equilibrium (Economics) |
ISBN |
An Estimated Dynamic Stochastic General Equilibrium Model of the Jordanian Economy
Title | An Estimated Dynamic Stochastic General Equilibrium Model of the Jordanian Economy PDF eBook |
Author | Samya Beidas-Strom |
Publisher | International Monetary Fund |
Pages | 53 |
Release | 2011-02-01 |
Genre | Business & Economics |
ISBN | 1455216755 |
This paper presents and estimates a small open economy dynamic stochastic general-equilibrium model (DSGE) for the Jordanian economy. The model features nominal and real rigidities, imperfect competition and habit formation in the consumer’s utility function. Oil imports are explicitly modeled in the consumption basket and domestic production. Bayesian estimation methods are employed on quarterly Jordanian data. The model’s properties are described by impulse response analysis of identified structural shocks pertinent to the economy. These properties assess the effectiveness of the pegged exchange rate regime in minimizing inflation and output trade-offs. The estimates of the structural parameters fall within plausible ranges, and simulation results suggest that while the peg amplifies output, consumption and (price and wage) inflation volatility, it offers a relatively low risk premium.
Monetary Policy in a Stochastic Equilibrium Model with Real and Nominal Rigidities
Title | Monetary Policy in a Stochastic Equilibrium Model with Real and Nominal Rigidities PDF eBook |
Author | Jinill Kim |
Publisher | |
Pages | 70 |
Release | 1998 |
Genre | Equilibrium (Economics) |
ISBN |
Money, Interest, and Policy
Title | Money, Interest, and Policy PDF eBook |
Author | Jean-Pascal Bénassy |
Publisher | MIT Press |
Pages | 215 |
Release | 2007 |
Genre | Equilibrium (Economics) |
ISBN | 0262026139 |
An important recent advance in macroeconomics is the development of dynamic stochastic general equilibrium (DSGE) macromodels. The use of DSGE models to study monetary policy, however, has led to paradoxical and puzzling results on a number of central monetary issues including price determinacy and liquidity effects. In Money, Interest, and Policy, Jean-Pascal Benassy argues that moving from the standard DSGE models - which he calls "Ricardian" because they have the famous "Ricardian equivalence" property-to another, "non-Ricardian" model would resolve many of these issues. A Ricardian model represents a household as a homogeneous family of infinitely lived individuals, and Benassy demonstrates that a single modification-the assumption that new agents are born over time (which makes the model non-Ricardian)-can bridge the current gap between monetary intuitions and facts, on one hand, and rigorous modeling, on the other. After comparing Ricardian and non-Ricardian models, Benassy introduces a model that synthesizes the two approaches, incorporating both infinite lives and the birth of new agents. Using this model, he considers a number of issues in monetary policy, including liquidity effects, interest rate rules and price determinacy, global determinacy, the Taylor principle, and the fiscal theory of the price level. Finally, using a simple overlapping generations model, he analyzes optimal monetary and fiscal policies, with a special emphasis on optimal interest rate rules
Dynamic Stochastic General Equilibrium Models and Money Market Interest Rates
Title | Dynamic Stochastic General Equilibrium Models and Money Market Interest Rates PDF eBook |
Author | Norman Kuhlmann |
Publisher | |
Pages | 104 |
Release | 2009 |
Genre | |
ISBN |
Some Stochastic Equilibrium Models of the Interest Rate
Title | Some Stochastic Equilibrium Models of the Interest Rate PDF eBook |
Author | Alfonso Novales |
Publisher | |
Pages | 420 |
Release | 1983 |
Genre | |
ISBN |
Policy Analysis and Forecasting in the World Economy
Title | Policy Analysis and Forecasting in the World Economy PDF eBook |
Author | Francis Vitek |
Publisher | International Monetary Fund |
Pages | 89 |
Release | 2013-12-19 |
Genre | Business & Economics |
ISBN | 1484314603 |
This paper develops a structural macroeconometric model of the world economy, disaggregated into thirty five national economies. This panel unobserved components model encompasses an approximate linear panel dynamic stochastic general equilibrium model featuring a monetary transmission mechanism, a fiscal transmission mechanism, and extensive macrofinancial linkages, both within and across economies. A variety of monetary policy analysis, fiscal policy analysis, spillover analysis, and forecasting applications of the estimated model are demonstrated, based on a Bayesian framework for conditioning on judgment.