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Estimates of the Output Gap in Armenia with Applications to Monetary and Fiscal Policy

This paper employs several econometric techniques to estimate the Armenian output gap. The findings indicate that the output gap is significantly positive in 2007 and 2008 and decreased dramatically in 2009. The paper uses these results to estimate a New Keynesian Phillips curve for Armenia, suggesting a significant role of the output gap and inflation expectations in determining current inflation. Finally, the underlying fiscal stance over the period 2000-09 is assessed by estimating the cyclically-adjusted fiscal balance. Most of Armenia’s fiscal deficit is found to be structural. Fiscal policy, while providing counter-cyclical support in 2009, has been largely pro-cyclical in the past
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; Figures; Tables; A. Model Specification; B. Methodology; C. Results and Discussion; A. Overview; B. Results and Discussion; V. Estimating the Cyclically-Adjusted Fiscal Balance for Armenia; A. Overview; B. Methodology; C. Results and Discussion; A. Non-Bayesian Estimation Techniques; A.1. Hodrick-Prescott Filter; A.2. Production Function Approach; A.3. Unobserved Components Model; A.4. Multivariate Kalman Filter; B. Figures and Tables; 1. Output Gap Estimates based on the HP Filter; 2. Output Gap Estimates based on the Production Function
Literary Form
non fiction
"August 2010."
Physical Description
1 online resource (78 p.)
Specific Material Designation
Form Of Item

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