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A Forward-Looking Macroeconomic Simulation Model for a Developing Country

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  • International Monetary Fund

Abstract

The paper develops a small dynamic macroeconomic simulation model for a representative developing country which relies on familiar macroeconomic theory and in which expectations are formed rationally. The model is useful for the analysis and simulation of important policy questions in a general-equilibrium setting. Several policy experiments are conducted which illustrate the workings of the model and yield fresh insights into the effects of standard macroeconomic policies in developing countries.

Suggested Citation

  • International Monetary Fund, 1989. "A Forward-Looking Macroeconomic Simulation Model for a Developing Country," IMF Working Papers 1989/053, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1989/053
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