A New Keynesian Model of the Armenian Economy
IMF Working Papers, March 1, 2009
Source details
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- A New Keynesian Model of the Armenian Economy
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Bibliographic details
- Authors: Ara Stepanyan, Era Dabla-Norris, Ashot Anatolii Mkrtchyan
- Published: March 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872132.001
Model overview
- Develops a small open economy dynamic stochastic general equilibrium (DSGE) model of the Armenian economy.
- Model structure is largely motivated by recent developments in DSGE modeling, with key extensions to incorporate specific structural characteristics of the Armenian economy.
- Resultant model can be used to simulate monetary policy paths and analyze the robustness of policy conclusions.
Empirical testing and model properties
- The paper tests the model’s properties on Armenian data.
- Demonstrates that the main stylized features relevant for monetary policy making are well captured by the model.
Policy analysis and applications
- Primary use: simulate monetary policy paths.
- Secondary use: analyze robustness of policy conclusions under model-implied dynamics.
Subjects and keywords covered
- Subjects: Consumption, Exchange rates, Financial services, Foreign exchange, Inflation, National accounts, Prices, Real exchange rates, Real interest rates, Remittances
- Keywords: Armenia, business cycle, Consumption, exchange rate appreciation, Exchange rates, Global, goods price, home goods inflation equation, Inflation, Inflation Targeting, interest rate, Macroeconomic Models, Monetary Transmission Mechanism, open economy, output-inflation tradeoff, price level, Real exchange rates, Real interest rates, WP