The EAGLE model for Hungary - a global perspective

László Békési (), Lorant Kaszab and Szabolcs Szentmihályi ()
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László Békési: Magyar Nemzeti Bank (Central Bank of Hungary)
Szabolcs Szentmihályi: Magyar Nemzeti Bank (Central Bank of Hungary)

No 2017/7, MNB Working Papers from Magyar Nemzeti Bank (Central Bank of Hungary)

Abstract: In this paper we adopt the Hungarian version of the EAGLE (Euro Area GLobal Economy) model. The version of the EAGLE model used in this paper allows for the high import content of export a typical feature of small open economies such as Hungary. We study the effects of four globally important shocks on Hungary: i) a slowdown of the Chinese economy, ii) more restrictive US monetary policy, iii) a reduction in oil prices, and iv) more protectionist US trade policy. We found these policies to have non-negligible indirect e/ects (beyond the relatively small direct ones) on Hungary mostly due to the workings of the shock to the eurozone which is our main trade partner.

Keywords: Multi-country DSGE; price and wage rigidity; EAGLE model; trade matrix; import content of export; local currency pricing; monetary policy shock; consumption preference shock; markup-shock. (search for similar items in EconPapers)
JEL-codes: E12 E13 E52 E58 F11 F41 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2017
New Economics Papers: this item is included in nep-eec, nep-int, nep-mac and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:wpaper:2017/7

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