An Open Economy Model of the Euro Area and the US

Taking stock of the recent developments in the New Open Macroeconomics literature, we build a two country Dynamic Stochastic General Equilibrium (DSGE) model of the euro area and the US, with nominal rigidities and imperfect exchange rate passthrough. The model is calibrated using parameters found in the literature. In order to illustrate the model’s dynamics we simulate its response to a number of shocks.

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Year of publication:	2007
Authors:	Alves, Nuno ; Gomes, Sandra ; Sousa, João
Institutions:	Banco de Portugal

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Classification:	E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; F4 - Macroeconomic Aspects of International Trade and Finance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008524175