Lecture

Small Open Economy Model

In course

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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.

Instructor

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Official source

https://mediaspace.epfl.ch/media/0_ijjnx5fd

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