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The Response Of Monetary Policy Through Interest Rate To Output Gap

Author

Listed:
  • Ion PÂRÞACHI

    (The Academy of Economic Studies of Moldova, Republic of Moldova)

  • Simion MIJA

    (The Academy of Economic Studies of Moldova, Republic of Moldova)

Abstract

It’s proposed to create a macroeconomic model in order to determine the relationship between these variables. This model is based on a structural autoregressive vector. The reaction form of studied variables to shocks of other variables included in the model represents the mechanism of transmission. Determination of this mechanism is considered a major objective of many macroeconomic studies.

Suggested Citation

  • Ion PÂRÞACHI & Simion MIJA, 2011. "The Response Of Monetary Policy Through Interest Rate To Output Gap," Proceedings of the International Conference Investments and Economic Recovery, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(1), pages 109-114, December.
    • Handle: RePEc:rom:efinvm:v:10:y:2011:i:1:p:109-114
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