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A calibrated structural model of the Czech economy

Author

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  • Tibor Hlédik

    (Czech National Bank)

Abstract

The paper presents a structural model framework for a small open economy. The model, based on optimising households and firms, has been calibrated on Czech macroeconomic data in order to develop an analytic framework suitable for analysing key policy questions related to the Czech Republic’s anticipated EMU accession. In order to be able to use the model for assessing both pre- and post-accession policy issues, two versions of the model – fixed and flexible exchange rate versions – were developed. The suitability of the two alternative models for policy analysis was subsequently tested on a series of impulse response exercises. The dynamic responses of the two models to selected shocks and policy experiments are plausible. Hence these results suggest that the presented analytic framework can serve as a good starting point for analysing complex policy issues facing the Czech Republic.

Suggested Citation

  • Tibor Hlédik, 2004. "A calibrated structural model of the Czech economy," Macroeconomics 0404027, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0404027
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    References listed on IDEAS

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    More about this item

    Keywords

    monetary policy; monetary union; EMU accession;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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