IDEAS home Printed from https://ideas.repec.org/a/lrq/journl/y2016i1p57-87.html
   My bibliography  Save this article

Secteur minier, politique monétaire et volatilité cyclique dans une petite économie ouverte

Author

Listed:
  • Michel-Ange Lokota

    (Laboratoire d'analyse-recherche en économie quantitative)

  • Boboy Y. Togba

    (Laboratoire d'analyse-recherche en économie quantitative)

  • Cédrick Tombola

    (Laboratoire d'analyse-recherche en économie quantitative)

  • Jean-Paul K. Tsasa

    (Laboratoire d'analyse-recherche en économie quantitative)

Abstract

Developing countries are often characterized by a high volatility of inflation, exchange rate and output in contrast to advanced economies. In this paper, we develop a small open-economy dynamic stochastic general equilibrium (SOE DSGE). We modify the model of Galí and Monacelli (2005) in order to take into account interactions between natural resource sector and business cycle. Then we calibrate the model using Congolese (DRC) data, in order to provide a reasonable description of its main features, particularly relative volatility of inflation and exchange rates. Finally, we use this framework to: (i) characterize the transmission mechanism of monetary policy; (ii) assess the macroeconomic implications of volatility on welfare when monetary policy follows a standard rule based on the targeting of domestic inflation. The purpose objective of this paper is to design a compact and transparent analytical tool to simulate the real effects of the monetary policy in the DRC.

Suggested Citation

  • Michel-Ange Lokota & Boboy Y. Togba & Cédrick Tombola & Jean-Paul K. Tsasa, 2016. "Secteur minier, politique monétaire et volatilité cyclique dans une petite économie ouverte," African Journal of Frontiers of Economics and Mathematics, The LAREQ Press, issue 1, pages 57-87, September.
    • Handle: RePEc:lrq:journl:y:2016:i:1:p:57-87
    as

    Download full text from publisher

    File URL: http://www.aj-fem.org/aj-fem-paper-i1-06
    Download Restriction: Access to full text is restricted to AJ-FEM members and institutional subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Monetary policy; Relative volatility; Natural resource sector; Business cycle;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lrq:journl:y:2016:i:1:p:57-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Paul K. Tsasa (email available below). General contact details of provider: https://edirc.repec.org/data/lareqcd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.