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Farms, fertiliser, and financial frictions : yields from a DSGE model /
This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model with a financial accelerator which captures key features of low-income countries (LICs). The predominance of supply shocks in LICs poses distinct challenges for policymakers, given the negative correlation between inflation an...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, District of Columbia] :
International Monetary Fund,
2017.
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| Colección: | IMF working paper ;
WP/17/112. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model with a financial accelerator which captures key features of low-income countries (LICs). The predominance of supply shocks in LICs poses distinct challenges for policymakers, given the negative correlation between inflation and the output gap in the case of supply shocks. Our results suggest that: (1) in the face of a supply-side shock, the most desirable interest rate rule involves simply targeting current inflation and smoothing the policy interest rate; and (2) ignoring financial frictions when evaluating policy rules can be particularly problematic in LICs, where financial frictions loom especially large. |
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| Descripción Física: | 1 online resource (52 pages) : illustrations (some color), tables, graphs. |
| ISBN: | 1475599153 9781475599152 1475595778 9781475595772 |
| ISSN: | 1018-5941 |