A Small Continuous Time Macro-Econometric Model of the Czech Republic
Abstract: In this paper we estimate a continuous time macro-econometric model of the Czech economy. The model is built as a system of twelve non-linear differential equations. We illustrate how the model can be used to determine the nominal equilibrium exchange rate of the Czech koruna in a macro-ec...Link(s) zu Dokument(en): | IHS Publikation |
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1. Verfasser: | |
Format: | IHS Series NonPeerReviewed |
Sprache: | Englisch |
Veröffentlicht: |
Institut für Höhere Studien
2000
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Zusammenfassung: | Abstract: In this paper we estimate a continuous time macro-econometric model of the Czech economy. The model is built as a system of twelve non-linear differential equations. We illustrate how the model can be used to determine the nominal equilibrium exchange rate of the Czech koruna in a macro-economic framework. The paper also investigates the effectiveness of monetary and fiscal policies in the presence of a fixed exchange rate regime and massive capital inflows. The search for an equilibrium point is outlined and stability and sensitivity analyses are provided, along with in-sample static and dynamic predictions with the approximate discrete analogue.; |
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