Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211881 
Year of Publication: 
2001
Series/Report no.: 
Bank of Finland Discussion Papers No. 3/2001
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We present a dynamic general equilibrium model with some nominal rigidities and calibrate it to euro area data.The most important features of the model include consumption/saving decisions according to Blanchard's stochastic lifetimes approach; valuation of private financial wealth according to the present value of capital income; overlapping Calvo wage contracts in the labour market; and a neoclassical supply side with Cobb-Douglas technology.The model is developed for use in analysing differences between perceived and actual monetary policy rules, which is then done as a means of evaluating the macroeconomic benefits of credibility in monetary policy.General properties of the model are analysed with a variety of simulation experiments.
Subjects: 
EDGE
rational expectation
DGE models
nominal rigidites
Persistent Identifier of the first edition: 
ISBN: 
951-686-705-7
Document Type: 
Working Paper

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