Macrofinancial Analysis in the World Economy: A Panel Dynamic Stochastic General Equilibrium Approach

Vitek, Francis

doi:10.5089/9781513537429.001

Cited by 11 publications

(9 citation statements)

References 16 publications

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“…One would be to take the observed long-run values for such variables -an empirical approach based on the so-called 'great ratios,' a concept first proposed by Klein and Kosobud (1961) and later expanded upon by King, Plosser, Stock, and Watson (1991), Ahmed and Rogers (2000), and Mills (2001). More recently such an approach has been applied to a dynamic stochastic general equilibrium (DSGE) setting; see Vitek (2015).…”

Section: A Translating Percent Of Potential Output Into Currency Unitsmentioning

confidence: 99%

Disinflation, External Vulnerability, and Fiscal Intransigence: Some Unpleasant Mundellian Arithmetic

Tanner

2017

IMF Working Papers

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This paper examines the policy challenges a country faces when it wants to both reduce inflation and maintain a sustainable external position. Mundell's (1962) policy assignment framework suggests that these two goals may be mutually incompatible unless monetary and fiscal policies are properly coordinated. Unfortunately, if the fiscal authority is unwilling to cooperate-a case of fiscal intransigence-central banks that pursue a disinflation on a 'go it alone' basis will cause the country's external position to further deteriorate. A dynamic analysis shows that if the central bank itself lacks credibility in its inflation goal, it must rely even more on cooperation from the fiscal authority than otherwise. Echoing Sargent and Wallace's (1981) 'unpleasant monetarist arithmetic,' in these circumstances, a 'go it alone' policy may successfully stabilize prices and output, but only on a short-term basis.

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Section: A Translating Percent Of Potential Output Into Currency Unitsmentioning

confidence: 99%

Disinflation, External Vulnerability, and Fiscal Intransigence: Some Unpleasant Mundellian Arithmetic

Tanner

2017

IMF Working Papers

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“…The GMF is a structural macro-econometric model of the world economy, disaggregated into forty national economies, as documented in Vitek (2015). 3 It was developed by an IMF team and builds on the IMF G-RAM.…”

Section: B) Adverse Scenariomentioning

confidence: 99%

Luxembourg

2017

IMF Staff Country Reports

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This Technical Note reviews the stability of Luxembourg’s financial system. The financial soundness indicators for Luxembourg’s financial system, which plays a key role in the intermediation of financial capital, have remained relatively robust in recent years. Household stress test results suggest that households’ solvency would be significantly affected by a drop in income and housing prices and a rise in unemployment. Bank liquidity displays broad resilience, but would be weakened should wholesale funding dry up or funding stress emerge in foreign currencies. Banks were found to be less vulnerable to direct contagion risk through bilateral exposure; however, most banks have considerable cross-border exposure.

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“…The baseline and adverse scenarios are generated in collaboration between MAS and the IMF FSAP team, using MAS' Monetary Model of Singapore and IMF's Global Macrofinancial Model(Vitek, 2015).22 The insurer solvency stress tests only use the first two years of the five-year adverse scenario, as explained in Box 5.©International Monetary Fund. Not for Redistribution…”

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confidence: 99%

Singapore

2019

IMF Staff Country Reports

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Singapore is a large financial center with a strong regulatory framework and significant external exposures. Singapore is a small and very open economy with a high saving rate and a significant foreign asset position. It boasts a highly developed and sophisticated financial sector, with many foreign branches intermediating funds throughout the region. Regulations are closely aligned to international standards. Since the last FSAP, bank solvency and liquidity has improved, and the authorities have adopted Basel III capital and liquidity requirements and the new International Financial Reporting Standards.

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Macrofinancial Analysis in the World Economy: A Panel Dynamic Stochastic General Equilibrium Approach

Cited by 11 publications

References 16 publications

Disinflation, External Vulnerability, and Fiscal Intransigence: Some Unpleasant Mundellian Arithmetic

Disinflation, External Vulnerability, and Fiscal Intransigence: Some Unpleasant Mundellian Arithmetic

Luxembourg

Singapore

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