{
  "title": "An Estimated Model with Macrofinancial Linkages for India",
  "publication": "IMF Working Papers, January 1, 2010",
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  "summary": "This paper develops a small open economy dynamic stochastic general-equilibrium model with macrofinancial linkages. The model includes a financial accelerator--entrepreneurs are assumed to partially finance investment using domestic and foreign currency debt--to assess the importance of financial fr",
  "sections": [
    {
      "heading": "Model overview",
      "content": "- Develops a small open economy dynamic stochastic general-equilibrium (DSGE) model with macrofinancial linkages.\n- Incorporates a financial accelerator: entrepreneurs are assumed to partially finance investment using domestic and foreign currency debt.\n- Uses the model to assess the importance of financial frictions in the amplification and propagation of the effects of transitory shocks."
    },
    {
      "heading": "Estimation approach",
      "content": "- Employs Bayesian estimation techniques.\n- Estimation is conducted using India data."
    },
    {
      "heading": "Key findings and uses",
      "content": "- The model is used to:\n  - Assess the importance of the financial accelerator in India.\n  - Assess the optimality of monetary policy."
    },
    {
      "heading": "Policy implications and analysis themes",
      "content": "- Focuses on:\n  - The role of macrofinancial linkages in open-economy settings.\n  - The interaction between financial frictions and macroeconomic dynamics.\n  - The assessment of optimal monetary policy in the presence of financial acceleration effects."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: Consumption, Depreciation, Exchange rates, Foreign exchange, Inflation, Labor, National accounts, Prices, Self-employment\n- Keywords: acquisition cost, adjustment cost parameter, bayesian estimation, capital producer, consumer welfare, Consumption, cost adjustment cost parameter, Depreciation, Exchange rates, financial accelerator, Global, Inflation, inflation volatility, inflation-if monetary policy, macro-financial linkages, monetary policy, monetary policy shock, open economy, optimal policy, rate of depreciation, reaction function, Self-employment, WP, WPI inflation\n\n---\n\n Content in this bundle\n\n- wp1021\n  - wp1021 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1021 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/an-estimated-model-with-macrofinancial-linkages-for-india-23529"
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    "Authors: Magnus Saxegaard, Rahul Anand, Shanaka J Peiris",
    "Published: January 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451962321.001",
    "Develops a small open economy dynamic stochastic general-equilibrium (DSGE) model with macrofinancial linkages.",
    "Incorporates a financial accelerator: entrepreneurs are assumed to partially finance investment using domestic and foreign currency debt.",
    "Uses the model to assess the importance of financial frictions in the amplification and propagation of the effects of transitory shocks.",
    "Employs Bayesian estimation techniques.",
    "Estimation is conducted using India data.",
    "The model is used to:",
    "Focuses on:",
    "Subjects: Consumption, Depreciation, Exchange rates, Foreign exchange, Inflation, Labor, National accounts, Prices, Self-employment",
    "Keywords: acquisition cost, adjustment cost parameter, bayesian estimation, capital producer, consumer welfare, Consumption, cost adjustment cost parameter, Depreciation, Exchange rates, financial accelerator, Global, Inflation, inflation volatility, inflation-if monetary policy, macro-financial linkages, monetary policy, monetary policy shock, open economy, optimal policy, rate of depreciation, reaction function, Self-employment, WP, WPI inflation",
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