In this paper, we develop a gap model based on a reduced form of the New Keynesian Model. The model offers various scenario structure tools which analyze the dynamics of key macro economic variables under diverse shocks and depicts their properties and historical decompositions. This framework...

Our paper is a case study devoted to a country which belongs to a group of less developed EMEs (LDEMEs), not depending on natural resources. In spite of many features which distinguish such countries from developed market economies, they are frequently modelled basing on assumptions which are...

The main objective of this work is to study the relationship between monetary policy and financial markets. We applied a VECM to analyze the data over the period from January 2011 to December 2017. Results show an homogeneity in the reaction of some sectoral indexes to monetary policy. This...