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A Dynamic Stochastic General Equilibrium Model for Policy Analysis in Uruguay

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  • German Cubas

    (Banco Central del Uruguay)

Abstract

The goal of this paper is twofold. First it is intended to contribute to the understanding of business cycles in Uruguay. Second, it is aimed to help the policymakers to have an additional tool for policy analysis. For this purpose I construct an open economy new keynesian business cycle model based on the work of Escude (2007). It includes a banking system and a richly modeled monetary policy with inflation targeting with interventions in the foreign exchange market by the central bank. The model is then calibrated to Uruguay in the period 1994:1-2010:2 and then used to analyze the reaction of the macroeconomic variables to exogenous shocks to productivity, government expenditures, international interest rate, monetary interventions, risk premium, international inflation and price of exports.Length: 50 pages

Suggested Citation

  • German Cubas, 2011. "A Dynamic Stochastic General Equilibrium Model for Policy Analysis in Uruguay," Documentos de trabajo 2011013, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2011013
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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/13.2011.pdf
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    References listed on IDEAS

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    4. Diego Gianelli, 2011. "El Traspaso de Tipo de Cambio a Precios en Uruguay," Documentos de trabajo 2011008, Banco Central del Uruguay.
    5. Castillo, Paul & Montoro, Carlos & Tuesta, Vicente, 2009. "A Dynamic Stochastic General Equilibrium Model with Dollarization for the Peruvian Economy," Working Papers 2009-003, Banco Central de Reserva del Perú.
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    7. Kim J. Ruhl, 2008. "The International Elasticity Puzzle," Working Papers 08-30, New York University, Leonard N. Stern School of Business, Department of Economics.
    8. Diego Gianelli, 2011. "El traspaso de tipo de cambio a precios en Uruguay," Documentos de Trabajo (working papers) 2711, Department of Economics - dECON.
    9. Conrado Brum & Elizabeth Bucacos & Patricia Carballo, 2010. "La demanda de dinero en una economía dolarizada. Una estimación para Uruguay," Documentos de trabajo 2010013, Banco Central del Uruguay.
    10. Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, September.
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    Cited by:

    1. German Cubas, 2012. "The Rate of Reserve Requirements and Monetary Policy in Uruguay: a DSGE Approach," Documentos de trabajo 2012011, Banco Central del Uruguay.
    2. Jorge Basal & Patricia Carballo & Fernanda Cuitiño & Serafín Frache & José Mourelle & Helena Rodríguez & Verónica Rodríguez & Leonardo Vicente, 2016. "Un modelo estocástico de equilibrio general para la economía uruguaya," Documentos de trabajo 2016002, Banco Central del Uruguay.
    3. Nikolay P. Pilnik & Malika F. Shaikhutdinova, 2017. "Modeling of the Balance of Payments State in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 84-101, October.

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