Further extends the core DSGE model with financial frictions to a small open economy setting. The model features, in particular, imperfect capital mobility, a managed float regime, and a two-level financial intermediation structure. The ability of the model to reproduce stylized facts is assessed by studying its performance in response to capital inflows induced an external financial shock, under both sterilized and unsterilized intervention.

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A Core Open-Economy DSGE Model with Financial Frictions

  • Pierre-Richard Agénor

摘要

Further extends the core DSGE model with financial frictions to a small open economy setting. The model features, in particular, imperfect capital mobility, a managed float regime, and a two-level financial intermediation structure. The ability of the model to reproduce stylized facts is assessed by studying its performance in response to capital inflows induced an external financial shock, under both sterilized and unsterilized intervention.