DSGE-МОДЕЛЮВАННЯ У ФОКУСІ ФІСКАЛЬНО-МОНЕТАРНОЇ ПРОБЛЕМАТИКИ

Abstract

Due to the intensification of the economic crisis in the late 20th – early 21st, fiscal and monetary issues have activated an impressive discourse, which became the prominent markers of helpful research engines for supporting sustainable development in the face of increasing debt burden. One of the most effective scenario modeling methods for implementing economic policy is the Dynamic Stochastic General Equilibrium (DSGE) model. The global practice in operating with such a tool is focused mainly on developed countries, while developing economies have significant differences and require notable adjustments. The goal of the presented study is to highlight the exercise of solving fiscal and monetary issues using a DSGE modeling toolkit for a developing economy. An incomplete list of proven features of DSGE modeling for a developing economy regarding the solution of fiscal and monetary issues includes: a high proportion of non-Ricardian consumers, forced unemployment, limited competition in the labor market, a significant volume of remittances, low efficiency and high capital return of public investment, low degree of home bias, smoothing crowding-out effect, financial repressions, limited mobility in the international capital market, lack of clear and transparent rules, and overruled fiscal and monetary spaces. In the context of the fiscal and monetary study, problematic issues of DSGE modeling are not limited only to the difficulties of theoretical and technical solutions. With the gradual elimination of barriers between the sectors in the world economy due to global transformations, the driving forces of growth require reviewing the anti-crisis management toolkit. Taking into account the progressive technological shifts in the field of information transmission and processing, the solution of the listed problematic issues related to the theoretical and technical support of DSGE modeling for a developing economy adds a new definition to the powerful hardware tool that reproduces specific scenario conditions for assessing the consequences of economic policy implementations.