Lecture

Small Open Economy Model

Description

This lecture covers a small open economy model with adjustment costs for bonds. The model includes a utility function, budget constraints, lagrangian, and first-order conditions. Analytical solutions and log-linearization are discussed, along with numerical derivatives and steady-state values. MATLAB codes are adjusted to simulate the model and plot impulse responses.

About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.