Computer Sciences Commons^™

Theoretical Analysis Of Dynamic General Equilibrium Model, Mimi Kodheli, Arjeta Vokshi

UBT International Conference

Central Bank is one of the most important institutions of a country because its responsibility is to draw and implement the monetary policy. The central bank, in order to accomplish this responsibility, has to have a clearly defined main objective, the instruments that will use to achieve the objective, and it should be able to make precise or very good forecasts of macroeconomic variables. In order to make these forecasts, the central bank should first of all understand every monetary transmission mechanism and determine the most effective one. The success or non-success of monetary policy, living apart the other factors, …