The three-day course will serve as an introduction to Dynamic Stochastic General Equilibrium (DSGE) macroeconomic modelling for MSc, MRES, PhD students and for researchers in Universities, Central Banks, Finance Ministries and the private sector. For those with some DSGE modelling experience it provides a specialized treatment of open and emerging economies.
The course covers the construction, calibration and estimation of Dynamic Stochastic General Equilibrium (DSGE) models for open emerging economies and their use for policy analysis. It is Dynare-based introductory course and assumes a basic knowledge of Matlab and a knowledge of dynamic optimization in macroeconomics.
It begins with the basics of Dynare and will then build up, in stages, from closed economy Real Business Cycle and New Keynesian models to the open economy with emerging economy features. The course will include a behavioural alternative to a rational expectations open economy model. It will also show how the models can be used to study policy using monetary and foreign exchange intervention instruments.