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@inproceedings{696762, author = {Musil, Karel and Vašíček, Osvald}, address = {Faro}, booktitle = {New Developments in Macroeconomic Modelling and Growth Dynamics: Book of Abstracts}, keywords = {New Keynesian DSGE model; New Open Economy Macroeconomics; monetary policy; Taylor rule; inflation targeting; rational expectations; Bayesian simulations}, language = {eng}, location = {Faro}, note = {Novokeynesiánský DSGE model; Nová otevřená makroekonomie; monatární politika; Taylorovo pravidlo; inflační cílení; racionální očekávání; Bayesiánská simulace}, pages = {13-13}, publisher = {University of Algarve, Campus de Gambelas}, title = {A New Open Economy Macroeconomics Model of the Czech Economy}, year = {2006} }
TY - JOUR ID - 696762 AU - Musil, Karel - Vašíček, Osvald PY - 2006 TI - A New Open Economy Macroeconomics Model of the Czech Economy PB - University of Algarve, Campus de Gambelas CY - Faro N1 - Novokeynesiánský DSGE model; Nová otevřená makroekonomie; monatární politika; Taylorovo pravidlo; inflační cílení; racionální očekávání; Bayesiánská simulace KW - New Keynesian DSGE model KW - New Open Economy Macroeconomics KW - monetary policy KW - Taylor rule KW - inflation targeting KW - rational expectations KW - Bayesian simulations N2 - The paper introduces a New Keynesian model of the small open Czech economy. The model is related to the New Open Economy Macroeconomics (NOEM) and is based on the Dynamic Stochastic General Equilibrium (DSGE) approach. It is derived from the microeconomic foundations and consists of representative agents – households, firms and a central monetary authority. The foreign sector is exogenous. The representative household optimizes its behavior – it maximizes its utility function which contains a habit formation factor and is influenced by the purchase power parity that includes some rigidities. A representative firm maximizes its profit function and sets the optimal price of the production in a Calvo style. The result of this optimization is a New Keynesian Phillips Curve (NKPC). The central bank conducts monetary policy according to a modified Taylor rule. The monetary regime is based on inflation targeting. Parameters of the model are estimated with Bayesian simulation techniques using apriory set information. The estimated model seems to give a suitable approximation of behavior of the Czech small open economy. ER -
MUSIL, Karel and Osvald VAŠÍČEK. A New Open Economy Macroeconomics Model of the Czech Economy. In \textit{New Developments in Macroeconomic Modelling and Growth Dynamics: Book of Abstracts}. Faro: University of Algarve, Campus de Gambelas, 2006, p.~13-13, 16 pp.
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