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I build a small open economy (SOE) dynamic stochastic general equilibrium (DSGE) model to investigate the effect of a …
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This study examines, diagnoses, and assesses appropriate macroeconomic policy responses of the Montenegrin Government to the outbreak of COVID-19. The model econometrically measures the macroeconomic costs using a Bayesian VARX Litterman/ Minessota prior to the pandemic disease in terms of...
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2019Q4. The fiscal policy block models the fiscal deficit depending on output, an endogenous sovereign risk premium, a …, such as a drop in commodity prices, an expansion of public spending, an increase in the risk premium, a hike in the … interest rate, and depreciation of the real exchange rate. We show that, remarkably, the risk premium channel transmits threats …
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