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The Core of a Macro-economic Model for Estonia

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  • Olivier Basdevant
  • Ulo Kaasik

Abstract

This article presents a macro-econometric model for Estonia currently developed at the Bank of Estonia. It is based on a basic macro-economic framework that integrates both supply and demand side components. With this model we analyse the policy that should be implemented to maintain sustainable growth. The main emphasis is on the need to continue tough fiscal policy in order to maintain public deficit, as well as to avoid inflationary pressures and keep Estonia attractive to foreign investors.

Suggested Citation

  • Olivier Basdevant & Ulo Kaasik, 2002. "The Core of a Macro-economic Model for Estonia," Bank of Estonia Working Papers 2002-06, Bank of Estonia, revised 13 Oct 2002.
  • Handle: RePEc:eea:boewps:wp2002-06
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    File URL: http://www.eestipank.ee/sites/eestipank.ee/files/publication/en/WorkingPapers/2002/index_0.pdf
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    Cited by:

    1. Jaanika Meriküll, 2004. "Macroeconometric Modelling of the Estonian Economy," University of Tartu - Faculty of Economics and Business Administration, in: Tiiu Paas & Egle Tafenau (ed.), Modelling the Economies of the Baltic Sea Region, edition 1, volume 17, chapter 5, pages 138-166, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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