A New Keynesian Model of the Armenian Economy

45 Pages Posted: 6 Apr 2009

See all articles by Ashot Mkrtchyan

Ashot Mkrtchyan

Central Bank of Armenia

Era Dabla-Norris

International Monetary Fund (IMF)

Ara Stepanyan

International Monetary Fund (IMF)

Date Written: March 2009

Abstract

This paper develops a small open economy dynamic stochastic general equilibrium (DSGE) model of the Armenian economy. The structure of the model is largely motivated by recent developments in DSGE modeling, with key extensions to incorporate specific structural characteristics of the Armenian economy. The resultant model can be used to simulate monetary policy paths and help analyze the robustness of policy conclusions. The paper tests the model’s properties on Armenian data, demonstrating that the main stylized features relevant for monetary policy making are well captured by the model.

Keywords: Monetary policy, Armenia, Inflation targeting, Business cycles, Inward remittances, Transfers of foreigners income, Exchange rate appreciation, Economic models

Suggested Citation

Mkrtchyan, Ashot and Dabla-Norris, Era and Stepanyan, Ara, A New Keynesian Model of the Armenian Economy (March 2009). Available at SSRN: https://ssrn.com/abstract=1372944 or http://dx.doi.org/10.2139/ssrn.1372944

Ashot Mkrtchyan

Central Bank of Armenia ( email )

V.Sargsyan St. 6,
Yerevan, 375010
Armenia

Era Dabla-Norris

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Ara Stepanyan

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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