In this paper, we describe a new multi-country open economy SDGE model named SIGMA that we have developed as a quantitative tool for policy analysis. We compare SIGMA's implications to those of an estimated large-scale econometric policy model (the FRB/Global model) for an array of shocks that...

This paper derives analytical results for the relationship between the slope of the excess demand function and the dynamic properties around a deterministic steady state in a two country model. In models that admit multiple steady states, the sign of the slope of the excess demand function is...

Several methods have been proposed to obtain stationarity in open economy models. I find substantial qualitative and quantitative differences between these methods in a two-country framework, in contrast to the results of Schmitt-Grohé and Uribe (2003). In models with a debt elastic interest...