ARGEMmy: An Intermediate DSGE Model Calibrated/Estimated for Argentina, Two Policy Rules Are Often Better than One

Working papers | 2009 | N 42

Abstract

.The purpose of this paper is to advance in the construction and calibration/estimationof an intermediate DSGE model with two policy rules for Argentina and exploreto what extent two policy rules can be better than one. The BCRAís researchdepartment currently uses a very small and non-micro founded model with twopolicy rules which I designed a few years ago (MEP: Modelo Económico Pequeño (see Elosegui, Escudé, Garegnani & Sotes Paladino 2007)) as the backbone for a system of macro and monetary projections.

JEL classification: E51, E52, E58, B23