Monetary policy in a small open economy model : a DSGE-VAR approach for Switzerland

Gregor Bäurle; Tobias Menz

We study the transmission of monetary shocks and monetary policy with a behavioral model, corrected for potential misspecification using the DSGE-VAR framework elaborated by DelNegro and Schorfheide (2004). In particular, we investigate if the central bank should react to movements in the nominal exchange rate. We contribute to the empirical literature as we use Swiss data, which is very rarely used in that context.

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Year of publication:	2008
Authors:	Bäurle, Gregor ; Menz, Tobias
Publisher:	Gerzensee : Study Center Gerzensee
Subject:	Bayesian Analysis \| DSGE-VAR \| Small Open Economy \| Optimal Policy \| Geldpolitik \| Monetary policy \| Geldpolitische Transmission \| Monetary transmission \| Schock \| Shock \| Prognoseverfahren \| Forecasting model \| Kleine offene Volkswirtschaft \| Small open economy \| Bayes-Statistik \| Bayesian inference \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| VAR-Modell \| VAR model \| Schätzung \| Estimation \| Schweiz \| Switzerland