Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
969196 | Journal of Policy Modeling | 2015 | 16 Pages |
Abstract
To investigate the dynamic effect of external shocks on an oil exporting economy, we estimate, using Bayesian approach, a DSGE model based on the features of the Algerian economy. We analyze the impulse response functions of our external shocks according to alternative monetary rules. The welfare cost associated with each monetary policy rule is considered. We find that, over the period 1990–2010, core inflation monetary rule allows better to stabilize both output and inflation. This rule also appears to be the best way to improve a social welfare.
Keywords
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jean Pierre Allegret, Mohamed Tahar Benkhodja,