Application of the Bayesian New Keynesian DSGE Model to Polish Macroeconomic Data

In the paper we estimate a simple New Keynesian Dynamic Stochastic General Equilibrium NK DSGE model on basis of Polish macro data from period 2000-2019. The is specified similarly to Galí (2008) with use Bayesian approach. combines advantages both structural models and time-series and, therefore, shows significant degree alignment empirical data. estimation based prior distribution input parameters, which are later compared posteriors. results obtained allow for assessing persistence responses technological, inflationary monetary policy shocks. On model, formulate perception macroeconomic interactions, e.g. nominal interest rates’ association inflation output gap. other words, provides better understanding relationship between rates, This in turn makes it easier understand response function.