Optimal Exchange Rate and Fiscal Policies for Slovenia on its Way into the Euro Area

Reinhard Neck (), Gottfried Haber and Klaus Weyerstrass
Additional contact information
Gottfried Haber: Klagenfurt University, Austria

Managing Global Transitions, 2012, vol. 10, issue 3 (Fall), 231-243

Abstract: This paper analyzes the design of macroeconomic policies for Slovenia on its way into the Euro Area. We simulate different policy scenarios, distinguishing in particular between different exchange rate regimes. For this purpose, we use the model SLOPOL4, a macroeconometric model for Slovenia. We determine ‘optimal’ exchange rate and fiscal policies for Slovenia as solutions of optimum control problems with a quadratic objective function and the model slopol4 as a constraint. Several optimization experiments are carried out under different assumptions under a fixed exchange rate, a flexible exchange rate and a crawling peg regime approximating Slovenia’s entry into the Euro Area. The sensitivity of the results is examined with respect to several assumptions.

Keywords: optimal control; econometric model; macroeconomic policy; Slovenia; sensitivity analysis (search for similar items in EconPapers)
JEL-codes: C5 E5 E6 O5 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.fm-kp.si/zalozba/ISSN/1581-6311/10_231-243.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mgt:youmgt:v:10:y:2012:i:3:p:231-243

Ordering information: This journal article can be ordered from
http://www.mgt.fm-kp.si

Access Statistics for this article

Managing Global Transitions is currently edited by Jana Hojnik

More articles in Managing Global Transitions from University of Primorska, Faculty of Management Koper Contact information at EDIRC.
Bibliographic data for series maintained by Alen Jezovnik ().