01912cas a2200253 a 4500 AALejournalIMF004942 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869262 1018-5941 BD-DhAAL BD-DhAAL Karam, Philippe. A Small Structural Monetary Policy Model for Small Open Economies with Debt Accumulation / Philippe Karam, A. R. Pagan. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We extend a small New Keynesian structural model used for monetary policy analysis to address a richer class of policy issues that arise in open economy analysis. We draw a distinction between absorption and domestic output, and as the difference between the two is effectively the current account, there is now an explicit accumulation or decumulation of foreign liabilities in response to various shocks affecting the system. Such stock equilibria can now have an impact back on to the flows in the domestic economy. We perform simulations using parameters calibrated to the Canadian economy and compare the differences in impulse responses from the original model. Advantages in a forecasting environment owing to the ability to impose explicit projections about imports and exports are also exposed. Mode of access: Internet Pagan, A. R. IMF Working Papers; Working Paper ; No. 2008/064 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/064/001.2008.issue-064-en.xml IMF e-Library