Business Cycle Dynamics and Macroprudential Policy Through the Lens of the Aino Model - A Micro-Founded Small Open Economy DSGE Mo

Fabio Verona, Juha Kilponen, Seppo Orjasniemi and Antti Ripatti

No 8441, EcoMod2015 from EcoMod

Abstract: We specify a DSGE model for the small open economy of Finland and incorporate a monopolistic competitive banking sector in the spirit of Gerali, Neri, Sessa, and Signoretti (2010) for the purpose of analyzing various macroprudential issues within general equilibrium setup. We incorporate a monopolistic competitive banking sector in the spirit of Gerali, Neri, Sessa, and Signoretti (2010) in a small open economy setting similar to that in Christoffel, Coenen, and Warne (2008) and Adolfson, Laseen, Linde, and Villani (2005, 2007, 2008). We estimate it using Bayesian methods. //

Keywords: Finland; Business cycles; Modeling: new developments (search for similar items in EconPapers)
Date: 2015-07-01
New Economics Papers: this item is included in nep-dge and nep-mac
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