01729cas a2200253 a 4500 AALejournalIMF009707 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451868456 1018-5941 BD-DhAAL BD-DhAAL Peiris, Shanaka. An Estimated DSGE Model for Monetary Policy Analysis in Low-Income Countries / Shanaka Peiris, Magnus Saxegaard. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (31 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 This paper evaluates monetary policy-tradeoffs in low-income countries using a dynamic stochastic general equilibrium (DSGE) model estimated on data for Mozambique taking into account the sources of major exogenous shocks, and level of financial development. To our knowledge this is a first attempt at estimating a DSGE model for Sub-Saharan Africa excluding South Africa. Our simulations suggests that a exchange rate peg is significantly less successful than inflation targeting at stabilizing the real economy due to higher interest rate volatility, as in the literature for industrial countries and emerging markets. Mode of access: Internet Saxegaard, Magnus. IMF Working Papers; Working Paper ; No. 2007/282 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/282/001.2007.issue-282-en.xml IMF e-Library