Transmission of Shocks and Monetary Policy in the Euro Area' an Exercise With Nigem

72 Pages Posted: 23 Apr 2007

See all articles by Enrique Alberola

Enrique Alberola

Bank for International Settlements (BIS)

Eva Ortega

Bank of Spain, DG Economics, Statistics and Research

Date Written: October16, 2000

Abstract

Global macroeconometric models can be a powerful tool for economic analysis and forecasting in various scenarios. This paper analyses the NiGEM model and its application to the euro area, placing particular emphasis on the study of the relative situation of the member countries' economies. The findings of the paper show that NiGEM provides for different reactions by the European economies to common exchange- and interest-rate changes, owing to their different economic structures. Notwithstanding the potential interest of these findings, the design and evaluation of shocks in NiGEM may be seen to call for a high degree of caution if NiGEM is to be considered a reliable and useful instrument.

Keywords: NiGEM model, interest-rate changes, shocks, monetary policy

JEL Classification: E17, E52

Suggested Citation

Alberola, Enrique and Ortega, Eva, Transmission of Shocks and Monetary Policy in the Euro Area' an Exercise With Nigem (October16, 2000). Banco de España Research Paper No. WP-0010, Available at SSRN: https://ssrn.com/abstract=981342 or http://dx.doi.org/10.2139/ssrn.981342

Enrique Alberola (Contact Author)

Bank for International Settlements (BIS) ( email )

Ruben Dario 281
Polanco, Miguel Hidalgo
Mexico City, 11580
Mexico

HOME PAGE: http://www.bis.org/author/enrique_alberola-ila.htm

Eva Ortega

Bank of Spain, DG Economics, Statistics and Research ( email )

Alcala 50
Madrid, 28014
Spain

HOME PAGE: http://https://www.bde.es/investigador/en/menu/people/research_staff_a/Ortega_Eslava__Eva.html

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