Monetary Policy in a Small Open Economy Model: A DSGE-VAR Approach for Switzerland

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 : Swiss National Bank, Study Center Gerzensee
Subject:	Geldpolitik \| Geldpolitische Transmission \| Schock \| Prognoseverfahren \| Kleine offene Volkswirtschaft \| Bayes-Statistik \| Dynamisches Gleichgewicht \| VAR-Modell \| Schätzung \| Schweiz \| Bayesian Analysis \| DSGE-VAR \| Small Open Economy \| Optimal Policy

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Series:	Working Paper ; 08.03
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	609940945 [GVK] hdl:10419/128054 [Handle] RePEc:szg:worpap:0803 [RePEc]
Classification:	C11 - Bayesian Analysis ; C32 - Time-Series Models ; E58 - Central Banks and Their Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10011430077