TY  - JOUR
AU  - Adolfson,Malin
AU  - Laséen,Stefan
AU  - Lindé,Jesper
AU  - Svensson,Lars E.O.
TI  - Optimal Monetary Policy in an Operational Medium-Sized DSGE Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14092
PY  - 2008
Y2  - June 2008
UR  - http://www.nber.org/papers/w14092
L1  - http://www.nber.org/papers/w14092.pdf
N1  - Author contact info:
Malin Adolfson
Sveriges Riksbank
SE-103 37 Stockholm
Sweden
Tel: 46-8-787-04-96
Fax: 46-8-21-0531
E-Mail: malin.adolfson@riksbank.se

Stefan Laseen
Sveriges Riksbank
SE-103 37 Stockholm
Sweden
E-Mail: stefan.laseen@riksbank.se

Jesper Linde
International Finance
Mail Stop 20
Federal Reserve Board
20th and C streets, NW
Washington, D.C. 20551
E-Mail: Jesper.L.Linde@frb.gov

Lars E.O. Svensson
Sveriges Riksbank
SE-103 37 Stockholm
SWEDEN
Tel: +46 8 787 0107
Fax: +46 8 21 0531
E-Mail: lars.svensson@iies.su.se
AB  - We show how to construct optimal policy projections in Ramses, the Riksbank’s open-economy medium-sized DSGE model for forecasting and policy analysis. Bayesian estimation of the parameters of the model indicates that they are relatively invariant to alternative policy assumptions and supports our view that the model parameters may be regarded as unaffected by the monetary policy specification. We discuss how monetary policy, and in particular the choice of output gap measure, affects the transmission of shocks. Finally, we use the model to assess the recent Great Recession in the world economy and how its impact on the economic development in Sweden depends on the conduct of monetary policy. This provides an illustration on how Rames incorporates large international spillover effects. 
ER  -