Practical Model-Based Monetary Policy Analysis--A How-To Guide

 
Author/Editor: Berg, Andrew ; Laxton, Douglas ; Karam, Philippe D
 
Publication Date: March 01, 2006
 
 
Summary: This paper provides a how-to guide to model-based forecasting and monetary policy analysis. It describes a simple structural model, along the lines of those in use in a number of central banks. This workhorse model consists of an aggregate demand (or IS) curve, a price-setting (or Phillips) curve, a version of the uncovered interest parity condition, and a monetary policy reaction function. The paper discusses how to parameterize the model and use it for forecasting and policy analysis, illustrating with an application to Canada. It also introduces a set of useful software tools for conducting a model-consistent forecast.
 
Subject(s): Monetary policy | Canada | United States | Monetary aggregates | Forecasting models | Economic models

Author's Keyword(s): Monetary Policy | Forecasting and Simulation | Model construction and estimation | computational techniques
 
English
Publication Date: March 01, 2006
ISBN/ISSN: 0 / 1934-7073 Format: Paper
Stock No: WPIEA2006081 Pages: 69
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
 
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