Abstract:This paper adapts the DSGE (dynamic stochastic general equilibrium) model of Medina and Soto (2007) in the context of Kazakhstani economy, and fully estimates it using Bayesian methods. The main goal of the paper is to contribute to the scarce macroeconomic modeling literature on Kazakhstan.Overall, we find that the oil price shock is key in explaining the variance of virtually all the variables of interest -in particular, it accounts for more than 40% of variance in real exchange rate over the longterm horizo… Show more
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