Published in Romanian Journal of Economic Forecasting,
| Requires a PDF viewer such as Xpdf
In this paper I estimate a New Keynesian Model with sticky prices for the Romanian economy for the period 1991-2002, using quarterly data. The estimation was made in Dynare using the Bayesian approach. The degree of the price stickiness is moderate. The model makes good predictions in terms of correlations and standard deviations. The impulse response functions with respect to the monetary shock show moderate and persistent responses.
business cycle, New Keynesians, monetary policy, DSGE models, Bayesian Econometrics
JEL Classification: C11, C15, E31, E32