economy and investigates the impact of policy breaks on the estimation procedure. We estimate a DSGE model on Swedish data … latter. The external sector plays an important role in the economy and the international transmission mechanism is … output and employment, but also to a depreciated currency, higher inflation and a more volatile economy. We also show …

are sufficient for replicating the flex-price economy. If energy is used in production there will be deviations from …

from an estimated model of the Swedish economy instead suggests that country-specific shocks have been important for … fluctuations in the Swedish economy since 1993, implying that EMU membership could be costly. The model also indicates that the … exchange rate has to a large extent acted to destabilize, rather than stabilize, the Swedish economy, pointing to the costs of …