Monetary Policy in a Small Open Economy Model: A DSGE-VAR Approach for Switzerland

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Monetary Policy in a Small Open Economy Model: A DSGE-VAR Approach for Switzerland

Author Info

Gregor Bäuerle () (University of Bern)
Tobias Menz () (University of Bern and Study Center Gerzensee)

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Gregor Baeurle

Abstract

We study the transmission of monetary shocks and monetary policy with a behavioral model, corrected for potential misspecification using the DSGE-VAR framework elaborated by DelNegro and Schorfheide (2004). In particular, we investigate if the central bank should react to movements in the nominal exchange rate. We contribute to the empirical literature as we use Swiss data, which is very rarely used in that context.

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Paper provided by Swiss National Bank, Study Center Gerzensee in its series Working Papers with number 08.03.

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Length: 56 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:szg:worpap:0803

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This paper has been announced in the following NEP Reports:

NEP-ALL-2008-12-07 (All new papers)
NEP-CBA-2008-12-07 (Central Banking)
NEP-DGE-2008-12-07 (Dynamic General Equilibrium)
NEP-EEC-2008-12-07 (European Economics)
NEP-MAC-2008-12-07 (Macroeconomics)
NEP-MON-2008-12-07 (Monetary Economics)
NEP-OPM-2008-12-07 (Open MacroEconomics)

References listed on IDEAS
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