Working Paper – WP/14/04: A medium-sized open economy DSGE model of South Africa
Stan du Plessis, Ben Smit and Rudi Steinbach
Last Modified Date:
2020-10-01, 09:31 PM
Publications > Working Papers
In this paper a dynamic stochastic general equilibrium (DSGE) model is specified for the South African economy. Nominal andreal frictions help to make the model estimable, and is then estimated on South African and global data using Bayesian techniques. The empirical fit of the model is validated through a forecast comparison with private sector consensus forecasts. The model is found to outperform the inflation forecasts of private sector economists.