Macroeconomic model of national economy development (extended)

The macroeconomic model offered in this paper describes complex functioning of national economy and can be used for forecasting of possible directions of its development depending on various economic policies. It is the extention of [2] and adoptation of [3]. With the purpose of determination of state policies influence in the field of taxes and exchange rate national economy is considered within the framework of three sectors: government, private and external world. The model is described by system of equations, including on behavioral ones. It lets to obtain the solution for Balance of Payments, National Accounts, Public Sector Finances and External Debt. In the model last letter of each identifier designates, that appropriate variable is designed or in the current prices (L – in national currency, D – in dollars), or in the base year prices (R). As a base for account of behavioral functions serve real values of variables. Transition from real parameters to nominal is carried out by means of appropriate indexes of the prices, and from parameters, determined in dollars, to the corresponding parameters in local currency — through the exchange rate. Balance of Payments Export The export of goods and services (XGNFSD) is fined as a sum of export of goods ( XMRCHD) and export of services (XGFSRD). c ©1997 by M.Diaconova, E.Naval, L.Savenko