A Microfounded Sectoral Model for Open Economies

J.E.J. Plasmans, J. Fornero, T. Michalak

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Abstract

Numerical simulations of the two-country sectoral model are provided for a relatively large number of structural shocks as domestic and foreign productivity shocks in final tradables and non-tradables, money demand shocks and a shock in the exchange rate. Such a model is well suited for monetary policy analysis at the international level and risk analysis.
Original languageEnglish
Place of PublicationTilburg
PublisherMacroeconomics
Number of pages61
Volume2007-39
Publication statusPublished - 2007

Publication series

NameCentER Discussion Paper
Volume2007-39

Keywords

  • New Keynesian open economy model
  • tradable and non-tradable sectors
  • final and intermediate goods
  • log-linearization

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