Macroeconomic Responses to Terms-of-Trade Shocks: A Framework for Policy Analysis for the Argentine Economy
IMF Working Papers, May 1, 2009
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Bibliographic details
- Authors: Pelin Berkmen
- Published: May 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872644.001
Overview
- Presents a version of the global integrated monetary fiscal (GIMF) model adapted and calibrated to the Argentine economy.
- Replicates the effect of the strong improvement in Argentina's terms of trade stemming from higher world commodity prices and other key economic trends in Argentina during the period 2003-2007.
- The model can be used to assess the potential impact of different combinations of monetary and fiscal policies on output, inflation, and the external trade.
Model and calibration
- Model: global integrated monetary fiscal (GIMF) model, adapted and calibrated to the Argentine economy.
- Calibration target period: 2003-2007.
- Focus: terms-of-trade improvement due to higher world commodity prices and concurrent Argentine economic trends.
Applications and substantive findings
- Use cases:
- Assess potential impact of different combinations of monetary and fiscal policies on output.
- Assess potential impact of different combinations of monetary and fiscal policies on inflation.
- Assess potential impact of different combinations of monetary and fiscal policies on the external trade.
- Policy areas addressed: interest rate, monetary policy, open economy dynamics, conventional peg and exchange rate arrangements, fiscal policy, return on investment.
Subjects and keywords
- Subject: Commodities, Conventional peg, Exchange rate arrangements, Fiscal policy, Return on investment
- Keywords: interest rate, monetary policy, open economy, WP
Source: IMF Working Papers landing page for "Macroeconomic Responses to Terms-of-Trade Shocks: A Framework for Policy Analysis for the Argentine Economy" (May 1, 2009).