CEU Electronic Theses and Dissertations, 2009
| Author | Jakab, Zoltan Matyas |
|---|---|
| Title | Topics in Open Economy Macroeconomics: Currency Choice and Exchange Rate Pass-Through and An Estimated DSGE Model of the Hungarian Economy |
| Summary | This thesis touches upon three studies in open economy macroeconomics. The first two chapters deal with the endogeneity of exchange rate pass-through. Chapter 1 deals with empirical observations on the relationship between pass-through and the currency of invoicing and the role of nominal wage rigidities in pass-through determination. A two country endogenous pass-through model is set up to demonstrate the relevance of nominal wage rigidities, openness and the conduct of monetary policy in pass-through determination. Chapter 2 takes a different perspective on the consequences of the endogeneity of pass-through. Here I focus on the conduct of monetary policy if currency choice is made endogenous. The effects of monetary stability, country size and openness are discussed. Chapter 3 presents an estimated dynamic stochastic general equilibrium (DSGE) model for Hungary. In this model an adaptive learning mechanism is incorporated into the pricing decisions of firms. In Chapter 3 I demonstrate how disinflation is captured by inserting a learning rule on underlying inflation in a DSGE model. Special attention is devoted to what are the consequences of monetary regime changes on the estimated coefficients. |
| Supervisor | Ratfai, Attila |
| Department | Economics PhD |
| Full text | https://www.etd.ceu.edu/2009/jakabz.pdf |
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