EconPapers    
Economics at your fingertips  
 

Policy Analysis with the MSG2 Model

Warwick McKibbin ()

RBA Research Discussion Papers from Reserve Bank of Australia

Abstract: This paper uses a dynamic intertemporal macroeconomic model of the world economy to examine the macroeconomic consequences for a small economy, such as Australia, of shocks in the world economy. The model, called the MSG2 (McKibbin-Sachs Global) model, is based on the assumption that agents maximise objective functions subject to intertemporal budget constraints. Allowance is also made for the existence of various rigidities in labour markets and imperfections in the ability of agents to borrow and lend. The model is parameterized based on techniques from computable general equilibrium models and standard macroeconomic models. It is used to examine the impact on Australia of fiscal and monetary policies in the U.S. and Japan as well as the transmission of policy changes within the Australian economy.

Date: 1987-11
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.rba.gov.au/publications/rdp/1987/8712.html

Related works:
Journal Article: Policy Analysis with the MSG2 Model (1988)
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:rba:rbardp:rdp8712

Access Statistics for this paper

More papers in RBA Research Discussion Papers from Reserve Bank of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Paula Drew ().

 
Page updated 2019-12-01
Handle: RePEc:rba:rbardp:rdp8712