Economics at your fingertips  

The Rate of Reserve Requirements and Monetary Policy in Uruguay: a DSGE Approach

German Cubas ()

No 2012011, Documentos de trabajo from Banco Central del Uruguay

Abstract: The goal of this paper is analyze the role of reserve requirements in the transmission of the monetary policy in Uruguay. Motivated by recent changes in the banking reserves rules implemented by the Central Bank a DSGE model that includes this feature is developed to understand its effects in the macroeconomic variables. The model is an extended version of the new keynesian business cycle model developed in Cubas (2011). It includes a banking system and a richly modeled monetary policy with inflation targeting with interventions in the foreign exchange market by the central bank. The model is then calibrated to Uruguay and then used to analyze the reaction of the macroeconomic variables to exogenous shocks to productivity, government expenditures, international interest rate, monetary interventions, risk premium, international inflation and price of exports; under different reserve requirement rules. The model predicts minor changes in the response of the variables of interest for the observed changes in the mean rate of reserve requirements in Uruguay in the period 2005-2011.

Pages: 68 pages
Date: 2012-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) ... 0Trabajo/11.2012.pdf Preliminary version, 2012 (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:

Access Statistics for this paper

More papers in Documentos de trabajo from Banco Central del Uruguay Biblioteca Especializada. Banco Central del Uruguay. Diagonal Fabini 777, Montevideo-Uruguay. CP 11100. Contact information at EDIRC.
Bibliographic data for series maintained by Biblioteca Especializada ().

Page updated 2021-05-02
Handle: RePEc:bku:doctra:2012011