New Keynesian Model of the Small Open Czech Economy

Investor logo

Warning

This publication doesn't include Faculty of Sports Studies. It includes Faculty of Economics and Administration. Official publication website can be found on muni.cz.
Authors

MUSIL Karel VAŠÍČEK Osvald

Year of publication 2006
Type Article in Proceedings
Conference Proceedings of the 24th International Conference Mathematical Methods in Economics 2006
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords New Keynesian DSGE model; New Open Economy Macroeconomics; monetary policy; Taylor rule; inflation targeting; rational expectations; Bayesian simulations
Description The paper introduces a New Keynesian Dynamic Stochastic General Equilibrium (NK DSGE) model. This model is related to the New Open Economy Macroeconomics (NOEM). It is strictly based on microeconomic foundations and consists of representative agents. They are representative households and firms, a central monetary authority and a foreign economy. The economic model is log–linearized and transformed to a rational expectations (LRE) model, which is solved. Parameters of the solved model are estimated by Bayesian simulation techniques using a priory set information. The estimated model together with the impulse responses seems to give a reasonable approximation of behavior of the Czech economy.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.

More info