Series: IMF Working Papers
Author(s): Magnus Saxegaard , Rahul Anand , and Shanaka Peiris
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2010
Keywords: financial accelerator, macro-financial linkages, optimal policy, bayesian estimation, inflation, foreign currency, nominal interest rate, monetary economics,
This paper develops a small open economy dynamic stochastic general-equilibrium model with macrofinancial linkages. The model includes a financial accelerator--entrepreneurs are assumed to partially finance investm...