Dynamic Monetary and Financial General Equilibrium Modeling
- Monetary circuit
- Flow-of-funds, balance sheets, reevaluation and transaction matrices
- Building stock-flow-consistent monetary and financial social accounting matrices
- Building a model with currency
- Building a model with currency and commercial bank money
- Introducing portfolio choice
- Introducing long-term bonds, capital gains
- Introducing liquidity preference
- Introducing dynamics
- Defining the steady-state, out-of-equilibrium and stability analysis
- Role of expectations and mistaken expectations
- Introducing capital accumulation and the role of inventories
- Pricing mechanisms
- Inflation
- Introducing exports, imports, and capital movements
- Fixed and flexible exchange rates
- Alternative closures
- Calibrating the models
- Implementing the models using GAMS in GAMS in NLP and MCP formats
- Formulating scenarios and running policy simulations
- Reporting and interpreting the results