Monetary and Fiscal Rules for Emerging Economies

Summary

This project grew out of a three-year collaboration, September 2008 – September 2011 financially supported by the Foreign Common-Wealth Office and led by Ila Patnaik and Ajay Shah of the National Institute for Public Finance Policy (NIPFP), New Delhi.  That project developed an estimated closed-economy DSGE model of the Indian economy, with particular attention paid to incorporating features relevant to the Indian economy such as informality and financial frictions. In this way we are contributing to as yet a small subset of the DSGE modelling literature that focuses on emerging economies.

Objectives

The current research intends to extend this study to small open economies with a large oil-exporting sector (such as Nigeria) and to countries also with an emerging financial sector (such as Qatar).  As with other projects, the implications of these specific features for the conduct of monetary, fiscal and banking regulatory policy will be studied.

Publications

Chetan Ghate, Pawan Gopalakrishnan & Suchismita Tarafdar, 2015 "Fiscal Policy in an Emerging Market Business Cycle Model," Indian Statistical Institute Discussion Paper 04-11.

Chetan Ghate, Radhika Pandey & Ila Patnaik, 2013 "Has India emerged? Business cycle facts from a transitioning economy," Structural Change and Economic Dynamics, Volume 24, Pages 157-172.

Nicoletta Batini & Paul Levine & Emanuela Lotti & Bo Yang, 2011. "Informality, Frictions and Monetary Policy," School of Economics Discussion Papers 0711, School of Economics, University of Surrey.

Nicoletta Batini & Paul Levine & Emanuela Lotti, 2011. "The Costs and Benefits of Informality," School of Economics Discussion Papers 0211, School of Economics, University of Surrey

Ila Patnaik & Ajay Shah & Rudrani Bhattacharya, 2011. "Monetary policy transmission in an emerging market setting," IMF Working Papers 11/5, International Monetary Fund.

Vasco Gabriel & Paul Levine & Joseph Pearlman & Bo Yang, 2010. "An Estimated DSGE Model of the Indian Economy," School of Economics Discussion Papers 1210, School of Economics, University of Surrey.

Nicoletta Batini & Vasco Gabriel & Paul Levine & Joseph Pearlman, 2010. "A Floating versus Managed Exchange Rate Regime in a DSGE Model of India," School of Economics Discussion Papers 0410, School of Economics, University of Surrey.

Nicoletta Batini & Paul Levine & Joseph Pearlman, 2009. "Monetary and Fiscal Rules in an Emerging Small Open Economy," IMF Working Papers 09/22, International Monetary Fund.