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An Estimated, New Keynesian Policy Model for Australia

  • Martin Melecky

    (University of New South Wales, School of Economics)

  • Daniel Buncic

    (University of New South Wales, School of Economics)

A two-block open economy model is estimated in this paper using Australian and U.S. data. Evaluation of the estimated model is carried out in relation to a simple closed economy alternative. Namely, we inspect the implied transmission mechanisms, and examine the relative out-of-sample forecasting performance of the closed and open economy models.

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File URL: http://econwpa.repec.org/eps/mac/papers/0511/0511026.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0511026.

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Length: 40 pages
Date of creation: 29 Nov 2005
Date of revision:
Handle: RePEc:wpa:wuwpma:0511026
Note: Type of Document - pdf; pages: 40
Contact details of provider: Web page: http://econwpa.repec.org

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