Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/217639
Authors: 
Bašić Vasiljev, Tamara
Year of Publication: 
2018
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 7 [Issue:] 1 [Publisher:] De Gruyter Open [Place:] Warsaw [Year:] 2018 [Pages:] 145-173
Publisher: 
De Gruyter Open, Warsaw
Abstract: 
We present a new-Keynesian model for small open economy, with price rigidities stemming from a Calvo pricing scheme (1983), monopolistic banking system, financial dollarization of the economy and monetary and fiscal policy governed by rules. We estimate the model on Serbian data and propose various model extensions that could be used for monetary and fiscal policy analysis. We consider 6 combinations of monetary and fiscal policy regimes, inflation targeting and currency peg on one hand, and discretionary cyclically neutral fiscal policy and fiscal rules, on the other. The model with inflation targeting and discretionary fiscal policy fits the data best.
Subjects: 
monetary policy
fiscal policy
DSGE model
coordination
Bayesian estimation
JEL: 
C15
E10
E12
E17
Е52
Е62
Е63
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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