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International Finance Discussion Papers: Optimal Monetary Policy in an Operational Medium-Sized DSGE Model

by United States Federal Reserve Board , Et Al , Malin Adolfson
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Current price ₹1,562.00
Original price ₹1,770.00
Original price ₹1,770.00
Original price ₹1,770.00
(-12%)
₹1,562.00
Current price ₹1,562.00

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Book cover type: Paperback
  • ISBN13: 9781288724703
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Bibliogov
  • Publisher Imprint: Bibliogov
  • Publication Date:
  • Pages: 52
  • Original Price: GBP 13.99
  • Language: English
  • Edition: N/A
  • Item Weight: 109 grams
  • BISAC Subject(s): General

We show how to construct optimal policy projections in Ramses, the Riksbank's open-economy medium-sized DSGE model for forecasting and policy analysis. Bayesian estimation of the parameters of the model indicates that they are relatively invariant to alternative policy assumptions and supports our view that the model parameters may be regarded as unaffected by the monetary policy specification. We discuss how monetary policy, and in particular the choice of output gap measure, affects the transmission of shocks. Finally, we use the model to assess the recent Great Recession in the world economy and how its impact on the economic development in Sweden depends on the conduct of monetary policy. This provides an illustration on how Rames incoporates large international spillover effects.

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