<abstract xmlns="http://www.w3.org/1999/xhtml"><p> We present a new-Keynesian model for small open economy, with price rigidities stemming from a Calvo pricing scheme (1983), monopolistic banking system, financial dollarization of the economy and monetary and fiscal policy governed by rules. We estimate the model on Serbian data and propose various model extensions that could be used for monetary and fiscal policy analysis. We consider 6 combinations of monetary and fiscal policy regimes, inflation targeting and currency peg on one hand, and discretionary cyclically neutral fiscal policy and fiscal rules, on the other. The model with inflation targeting and discretionary fiscal policy fits the data best.</p></abstract>

We present a new-Keynesian model for small open economy, with price rigidities stemming from a Calvo pricing scheme (1983), monopolistic banking system, financial dollarization of the economy and monetary and fiscal policy governed by rules. We estimate the model on Serbian data and propose various model extensions that could be used for monetary and fiscal policy analysis. We consider 6 combinations of monetary and fiscal policy regimes, inflation targeting and currency peg on one hand, and discretionary cyclically neutral fiscal policy and fiscal rules, on the other. The model with inflation targeting and discretionary fiscal policy fits the data best.

Estimated DSGE Model for Monetary and Fiscal Polic Coordination Analysis – The Case of Serbia

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

We present a new-Keynesian model for small open economy, with price rigidities stemming from a Calvo pricing scheme (1983), monopolistic banking system,...

Estimated DSGE Model for Monetary and Fiscal Polic Coordination Analysis – The Case of Serbia

Publié en ligne: 23 janv. 2018

Pages: 145 - 173

Reçu: 14 juin 2017

Accepté: 07 juil. 2017

DOI: https://doi.org/10.2478/jcbtp-2018-0007

Mots clés
monetary policy, fiscal policy, DSGE model, coordination, Bayesian estimation

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Estimated DSGE Model for Monetary and Fiscal Polic Coordination Analysis – The Case of Serbia

Publié en ligne: 23 janv. 2018

Pages: 145 - 173

Reçu: 14 juin 2017

Accepté: 07 juil. 2017

DOI: https://doi.org/10.2478/jcbtp-2018-0007

Mots clésmonetary policy, fiscal policy, DSGE model, coordination, Bayesian estimation

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Mots clés
monetary policy, fiscal policy, DSGE model, coordination, Bayesian estimation