Course Contents
Taken over the three days the participants will be guided through a coherent methodology summarized by the following steps:
The construction of a small open economy (SOE) NK DSGE model with emerging economy features building in stages from closed economy RBC to New Keynesian (NK) models, to the SOE NK model
The dynare model set-ups consisting of first-order conditions for economic agents and equilibrium conditions in the form of non-linear static or difference equations
The solution of the steady state to be used for both solution and calibration
Monetary and foreign exchange intervention policy using simple Taylor-type rules
Comparison of a linearized rational expectations SOE NK model with a behavioural counterpart
Bayesian estimation methodology
The Bayesian estimation of the small open economy model interacting with the rest of the world using data from an emerging economy.
Model comparison and validation by comparison with the second moments of data
Funding opportunities:
The following concessions is available: 20% discount for participants working or studying in institutions in developing countries.