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Introducing a Semi-Structural Macroeconomic Model for Rwanda, Luisa Charry, Pranav Gupta, Vimal Thakoor

Abstract
We develop a simple semistructural model for the Rwandan economy to better understand the monetary policy transmission mechanism. A key feature of the model is the introduction of a modified uncovered interest parity condition to capture key structural features of Rwanda’s economy and policy framework, such as the limited degree of capital mobility. A filtration of the observed data through the model allows us to illustrate the contribution of various factors to inflation dynamics and its deviations from the inflation target. Our results, consistent with evidence for other countries in the region, suggest that food and oil prices as well as the exchange rate have accounted for the bulk of inflation dynamics in Rwanda
Table Of Contents
Cover; Abstract; Contents; I. Introduction; II. An Overview of Rwanda's Economy and Monetary Policy Regime; Figures; Figure 1. Rwanda: Selected Economic Indicators, 2006-2013; III. The Model: Outline, Calibration, Filtering, and Forecast Exercise; A. The Model; B. Data and Calibration; IV. Filtering Rwandan Data through the Model; A. Forecast; V. Conclusions; Tables; Table 1: Data Series; Table 2: Calibration; Table 3: Goodness of fit; Figure 2: Impulse Response Functions I (Demand Shock); Figure 3: Impulse Response Functions II (Supply Shocks: Core, Food, Oil Inflation)
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (38 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781498357418

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