In: Ekonomický časopis/Journal of Economics, vol. 56, no. 6
Petre Caraiani
Details:
Year, pages: 2008, 537 - 550
Keywords:
business cycles, DSGE models, small open economy, monetary policy
JEL Classification: E32, E52
Article type: Vedecký / Article
About article:
In this paper I use an open economy dynamic stochastic general equilibrium model and estimate it for Romanian economy using Bayesian techniques. I esti-mate then the impact of domestic and external monetary policy shocks. Domestic interest shocks produce strong effects on output and exchange rate, and moder-ate ones on inflation. The effects are not very persistent. The results show that monetary policy shocks from Euro Area do matter for Romanian economy, but in moderate way. Overall, monetary policy in Romania is found to be less gradual but more conservative than the ECB one.
In this paper I use an open economy dynamic stochastic general equilibrium model and estimate it for Romanian economy using Bayesian techniques. I esti-mate then the impact of domestic and external monetary policy shocks. Domestic interest shocks produce strong effects on output and exchange rate, and moder-ate ones on inflation. The effects are not very persistent. The results show that monetary policy shocks from Euro Area do matter for Romanian economy, but in moderate way. Overall, monetary policy in Romania is found to be less gradual but more conservative than the ECB one.
How to cite:
ISO 690:
Caraiani, P. 2008. The Impact of Monetary Policy Shocks in a Small Open Economy. In Ekonomický časopis/Journal of Economics, vol. 56, no.6, pp. 537-550. 0013-3035.
APA:
Caraiani, P. (2008). The Impact of Monetary Policy Shocks in a Small Open Economy. Ekonomický časopis/Journal of Economics, 56(6), 537-550. 0013-3035.