THE IMPACT OF MONETARY POLICY SHOCKS IN A SMALL OPEN ECONOMY

• Authors: Caraiani Petre
• Languages of publication: EN

Abstracts

EN

In this paper the author uses an open economy dynamic stochastic general equilibrium model and estimates it for Romanian economy using the Bayesian techniques. He estimates then the impact of domestic and external monetary policy shocks. The domestic interest shocks produce strong effects on output and exchange rate, and moderate ones on inflation. The effects are not very persistent. The results show that the monetary policy shocks from Euro Area do matter for Romanian economy, but in moderate way. Overall, monetary policy in Romania is found to be less gradual but more conservative than the ECB one.

Keywords

EN

BAYESIAN TECHNIQUES; MONETARY POLICY; ROMANIAN ECONOMY; SMALL OPEN ECONOMY

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2008
• Volume: 56
• Issue: 6
• Pages: 537-550
• Document type: ARTICLE

Contributors

author

Caraiani Petre

• Romanian Academy, Institute for Economic Forecasting, Casa Academiei, Calea 13 Septembrie 13, 050711 Bucharest, Romania;

• P. Caraiani, Ekonomicky ustav SAV, Sancova 56, 811 05 Bratislava 1, Slovak Republic

Identifiers

CEJSH db identifier

08SKAAAA052810