DETERMINING OPTIMAL MONETARY AND CURRENCY POLICIES WITH DSGE MODELING

Optimal Growth Using Fiscal and Monetary Policies

Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut International d’Economie Politique IIEP International Economic Policy Institute IEPI Institut Internationa...

Quantitative Determination Of Optimal Fiscal And Monetary Policies: A Stochastic Optimal Control Analysis For Iran

Currency Misalignments and Optimal Monetary Policy: A Reexamination

This paper examines optimal monetary policy in an open-economy two-country model with sticky prices. We find that optimal policy must target not only inflation and the output gap, but also the currency misalignment. However the interest rate reaction function that supports this targeting rule involves only the CPI inflation rate. This result highlights how examination of interest-rate reaction ...

The Impact of Social damages on the Effectiveness of Fiscal and Monetary Policies: The DSGE Approach

 The purpose of this study is to investigate the effect of social damages (divorce, crime and addiction) on the effectiveness of fiscal and monetary policies. To achieve this, the literature on endogenous growth models has been used and the relationships of economic agents have been explained in the form of a dynamic stochastic general equilibrium model. In the designed DSGE model, labor produc...

Level-k DSGE and Monetary Policy

This paper develops a new framework of level-k DSGE for monetary policy analysis. Incomplete markets are introduced to guarantee the eductive stability of the equilibrium. k=1.265 is identified using growth and inflation expectations from the Michigan Survey of Consumers, capturing the missing indirect channels and weakened direct channels in households’ forecast rules, as well as the wedge bet...