FiMod - A DSGE model for fiscal policy simulations

► We develop a medium-scale DSGE model for fiscal policy simulations. ► It features a two-country monetary union structure and equilibrium unemployment. ► We provide a notable degree of disaggregation on the fiscal expenditures side. ► Fiscal consolidation is the least damaging when reducing the public sector wages. ► It is most damaging when carried out by cutting public investment.