' MODEL REEs (Reserve Earning Economies) for Eviews version 6
' from Angel Garcia Banchs
' Understanding Monetary and Fiscal Policies in Reserve Earning Economies

' This program creates and simulates model REEs_mod, described in
' Understanding Monetary and Fiscal Policies in Reserve Earning Economies.
' The program below is a largely modified version of that produced by
' Gennaro Zezza for the Growth Model (Chapter 11) of
' Monetary Economics, An Integrated Approach to Credit, Money, Income,
' Production and Wealth, an influential book whose authors are
' Wynne Godley and Marc Lavoie. Thus, the copyright notice and permission
' reproduced below are here included as requested by the authors.

' ****************************************************************************
' Copyright (c) 2006 Gennaro Zezza
' Permission is hereby granted, free of charge, to any person obtaining a
' copy of this software and associated documentation files (the "Software"),
' to deal in the Software without restriction, including without limitation
' the rights to use, copy, modify, merge, publish, distribute, sublicense,
' and/or sell copies of the Software, and to permit persons to whom the
' Software is furnished to do so, subject to the following conditions:
'
' The above copyright notice and this permission notice shall be included in
' all copies or substantial portions of the Software.
'
' THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
' IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
' FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
' AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
' LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
' FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS
' IN THE SOFTWARE.
' ****************************************************************************

' To produce a baseline

' Create a workfile, naming it REEs_mod, to hold annual data from 1950 to 2050

wfcreate(wf=REEs_mod, page=annual) a 1950 2050

' Creates and documents endogenous variables

series bbd_h
bbd_h.displayname Households’ demand for bank CDs
series bbs
bbs.displayname Banks’ supply of CDs
series bcbh_b
bcbh_b.displayname Banks’ effective holdings of central bank CDs
series bcbs
bcbs.displayname Central bank’s supply of CDs
series bfd_h
bfd_h.displayname Households’ demand for commercial paper
series bfs
bfs.displayname Firms’ supply of commercial paper
series bgd_h
bgd_h.displayname Government bills demanded by households
series bgh_b
bgh_b.displayname Government bills held by banks
series bgh_cb
bgh_cb.displayname Government bills held by central bank
series bgs
bgs.displayname Total supply of government bills
series bgs_b
bgs_b.displayname Government bills supplied to commercial banks
series bgs_cb
bgs_cb.displayname Government bills supplied to central bank
series bgs_h
bgs_h.displayname Government bills supplied to households
series blfd_h
blfd_h.displayname Households’ (i.e total) demand for corporate bonds
series blfs
blfs.displayname Supply of corporate bonds
series blgd_h
blgd_h.displayname Households’ (i.e total) demand for government bonds
series blgs
blgs.displayname Supply of government bonds
series bresd_b
bresd_b.displayname Bank reserves required by central bank
series bress
bress.displayname Bank reserves supplied to banks
series bsr
bsr.displayname Gross bank secondary reserve ratio
series btf_b
btf_b.displayname Before tax profits of banks
series btf_f
btf_f.displayname Before tax profits of firms
series c_k
c_k.displayname Real Consumption
series ca_row
ca_row.displayname Current account balance with ROW
series car
car.displayname Capital adequacy ratio of banks
series cashd_h
cashd_h.displayname Households’ (i.e total) demand for cash
series cashs
cashs.displayname Cash supplied to households (i.e. total supply)
series cg_f
cg_f.displayname Capital gains of firms
series cg_g
cg_g.displayname Capital gains of the government
series cg_h
cg_h.displayname Capital gains of households
series cg_row
cg_row.displayname Capital gains with the rest of the world
series chicb
chicb.displayname Speed of adjustment towards desired level of NIR
series cons
cons.displayname Consumption at current prices
series depa
depa.displayname Capital depreciation allowances (tax depreciation gains base)
series efd_h
efd_h.displayname Number of equities demanded by households (i.e. total demand)
series efs
efs.displayname Number of equities supplied by firms
series er
er.displayname Employment rate
series f_b
f_b.displayname Realized banks profits
series f_b_t
f_b_t.displayname Target profits of banks
series f_cb
f_cb.displayname Central bank “profits” transferred to the government
series f_f
f_f.displayname Realized gross entrepreneurial profits
series f_f_t
f_f_t.displayname Planned entrepreneurial profits of firms
series faps_row
faps_row.displayname Private financial account balance
series fcbgrowh_b
fcbgrowh_b.displayname Banks’ effective holdings of foreign T-Bills (subject to capital control or a maximum)
series fcbgrowh_cb
fcbgrowh_cb.displayname Central bank’s holdings of foreign (official) reserves (T-Bills)
series fcbgrows
fcbgrows.displayname ROW’s supply of foreign reserves (i.e. of T-Bills)
series fcblgd_row
fcblgd_row.displayname ROW’s demand for sovereign debt
series fcblgrowd_h
fcblgrowd_h.displayname Households’ demand for foreign T-bonds
series fcblgrows
fcblgrows.displayname ROW’s supply of foreign T-bonds
series fcblgs
fcblgs.displayname Supply of sovereign debt
series fcd
fcd.displayname Foreign currency government debt
series fcomegablg
fcomegablg.displayname Endogenously determined country risk premium (at the time of placement of security)
series fcpblg
fcpblg.displayname Price of sovereign debt
series fcpblgrow
fcpblgrow.displayname Price of foreign T-Bonds
series fcrbgrow
fcrbgrow.displayname Rate on foreign T-Bills (“International” short-term rate)
series fcrblg
fcrblg.displayname Rate on sovereign debt
series fcrblgrow
fcrblgrow.displayname Rate on foreign T-Bonds (“International” long-term rate)
series fcsdr
fcsdr.displayname Sovereign debt weighted average ratio to GDP and exports
series fd_b
fd_b.displayname Dividends of banks
series fd_f
fd_f.displayname Dividends of firms
series fp
fp.displayname Fiscal policy activist zone
series fu_b
fu_b.displayname Retained earnings of banks
series fu_b_t
fu_b_t.displayname Target retained earnings of banks
series fu_f
fu_f.displayname Retained earnings of firms
series fu_f_t
fu_f_t.displayname Target retained earnings of firms
series g
g.displayname Government expenditures
series g_k
g_k.displayname Real government expenditures
series gdh_g
gdh_g.displayname Government deposits at CB
series gds
gds.displayname Government deposits credited by central bank
series gir
gir.displayname Gross International Reserves
series girr
girr.displayname GIR ratio
series gr_g
gr_g.displayname Growth rate of real government expenditures
series gr_k
gr_k.displayname Growth rate of real capital stock
series hc_e
hc_e.displayname Expected historic cost
series i
i.displayname Gross investment
series i_k
i_k.displayname Gross investment in real terms
series in
in.displayname Stock of inventories at current costs
series in_k
in_k.displayname Real inventories
series in_k_e
in_k_e.displayname Target level of real inventories
series in_k_t
in_k_t.displayname Expected real inventories
series k
k.displayname Capital stock
series k_k
k_k.displayname Real capital stock
series lcbd_b
lcbd_b.displayname Discount operations function
series lcbs
lcbs.displayname Supply of loans to banks (discount window)
series lcd
lcd.displayname Local currency government debt
series ld_f
ld_f.displayname Demand for bank loans by firms (i.e. total demand)
series ls
ls.displayname Supply of loans to firms (i.e. total supply)
series m
m.displayname Imports
series m_k
m_k.displayname Actual real imports
series m_k_e
m_k_e.displayname Expected real imports
series m1h_g
m1h_g.displayname Current account deposits held by government
series m1h_h
m1h_h.displayname Current account deposits held by households
series m1s
m1s.displayname Current account deposits supplied by banks
series m2d_h
m2d_h.displayname Demand for saving account deposits
series m2s
m2s.displayname Saving account deposits supplied by banks
series ma_row
ma_row.displayname Monetary account balance
series n
n.displayname Employment level
series n_t
n_t.displayname Desired employment level
series nbsr
nbsr.displayname Net secondary reserves ratio
series nf_f
nf_f.displayname Realized after tax profits of firms
series nir
nir.displayname Net International Reserves
series nirr
nirr.displayname Net International Reserves ratio
series npl
npl.displayname Non Performing Loans
series npl_k_e
npl_k_e.displayname Expected proportion of Non Performing Loans
series nrt_g
nrt_g.displayname Government net rent transfers
series nrt_row
nrt_row.displayname Net rent transfers to ROW
series ode_f
ode_f.displayname Firms’ other debt and equity
series of_b
of_b.displayname Own funds of banks
series of_b_e
of_b_e.displayname Short-run target for banks’ own funds
series of_b_t
of_b_t.displayname Long-run target for banks’ own funds
series ofmfa_b
ofmfa_b.displayname Banks’ speculative assets
series omegablf
omegablf.displayname Premium on corporate bonds
series omegat
omegat.displayname Target real wage for workers
series pblf
pblf.displayname Endogenously determined price of corporate bonds
series pblg
pblg.displayname Price of government bonds
series pd
pd.displayname Domestic Price level
series pef
pef.displayname Price of equities
series phi
phi.displayname Actual mark-up
series phi_t
phi_t.displayname Ideal mark-up
series pi
pi.displayname Price inflation
series pm
pm.displayname Price of imports
series pr
pr.displayname Labor productivity
series ps
ps.displayname Mark-up sales price
series psbr
psbr.displayname Government deficit (borrowing requirements)
series px
px.displayname Export price
series py
py.displayname GPD deflator
series py_row
py_row.displayname GPD deflator ROW
series rbb
rbb.displayname Interest rate on bank CDs
series rbcb
rbcb.displayname Interest rate on central bank CDs
series rbf
rbf.displayname Interest rate on commercial paper
series rbg
rbg.displayname Interest rate on government bills
series rblf
rblf.displayname Interest rate on corporate bonds
series rblg
rblg.displayname Interest rate on T-bonds
series rk
rk.displayname Dividend yield of firms
series rl
rl.displayname Interest rate on loans
series rlcb
rlcb.displayname Interest rate on discount operations
series rm
rm.displayname Interest rate on deposits
series robb
robb.displayname Reserve requirements rate on bank CDs
series robg
robg.displayname CB’s government bills to total assets ratio
series rom1
rom1.displayname Reserve requirements rate on CA deposits
series rom2
rom2.displayname Reserve requirements rate on SA deposits
series rt_f
rt_f.displayname Firms’ rent payments
series rt_h
rt_h.displayname Households’ rent receipts
series rt_row
rt_row.displayname Rents paid to ROW
series s
s.displayname Sales at current prices
series s_k
s_k.displayname Real sales
series s_k_e
s_k_e.displayname Expected real sales
series sigmase
sigmase.displayname Opening inventories to expected sales ratio
series spread
spread.displayname Spread between interest rate on loans and rate on deposits
series sr
sr.displayname Seignorage rate
series stigmabg
stigmabg.displayname Pass-through (or, alternatively, repatriation) motive elasticity
series t
t.displayname Taxes
series t_b
t_b.displayname Banks tax payments
series t_f
t_f.displayname Corporate tax payments
series t_h
t_h.displayname Income taxes from households
series ta_row
ta_row.displayname Trade account balance with ROW
series td
td.displayname Nominal government debt
series thuc
thuc.displayname Trend historic unit cost
series tuc
tuc.displayname Trend unit costs
series u
u.displayname Capital utilization proxy
series uc
uc.displayname Actual unit costs
series v_f
v_f.displayname Wealth of firms
series v_h
v_h.displayname Wealth of households
series v_h_k
v_h_k.displayname Real wealth of households
series vfma_h
vfma_h.displayname Investible wealth of households
series w
w.displayname Wage rate
series wb
wb.displayname Wage bill
series x
x.displayname Exports
series x_k
x_k.displayname Real exports
series xr
xr.displayname Foreign exchange rate
series xr_e
xr_e.displayname Expected foreign exchange rate
series xrendog
xrendog.displayname Endogenously determined foreign exchange rate
series y
y.displayname Output at current prices (nominal GDP)
series y_k
y_k.displayname Real output
series y_row_k
y_row_k.displayname Growth of real output in the ROW
series ydhs_b
ydhs_b.displayname Banks’ Haig-Simons measure of disposable income
series ydhs_f
ydhs_f.displayname Firms’ Haig-Simons measure of disposable income
series ydhs_h
ydhs_h.displayname Households’ Haig-Simons measure of disposable income
series ydr_f
ydr_f.displayname Nominal regular disposable income of firms
series ydr_h
ydr_h.displayname Nominal regular disposable income of households
series ydr_h_k
ydr_h_k.displayname Households’ regular real disposable income
series ydr_h_k_e
ydr_h_k_e.displayname Households’ expected regular real disposable income
series yp
yp.displayname Personal income
series z1
z1.displayname Fiscal Policy dummy affecting rate of growth of fiscal expenditures within the fiscal policy activist zone
series z10
z10.displayname Openness (Trade/GDP) ratio dummy
series z11
z11.displayname First bargaining and employment dummy
series z12
z12.displayname Second bargaining and employment dummy
series z13
z13.displayname Third bargaining and employment dummy
series z14
z14.displayname First dummy - mechanism for determining changes to the interest rate on bank CDs
series z15
z15.displayname Second dummy - mechanism for determining changes to the interest rate on bank CDs
series z16
z16.displayname Discount operation dummy
series z2
z2.displayname Fiscal Policy dummy affecting rate of growth of fiscal expenditures within the fiscal policy activist zone
series z3
z3.displayname Fiscal Policy dummy affecting rate of growth of fiscal expenditures within the fiscal policy activist zone
series z4
z4.displayname Fiscal Policy dummy affecting rate of growth of fiscal expenditures within the fiscal policy activist zone
series z5
z5.displayname Government deposits dummy
series z6
z6.displayname Relative abundance of foreign reserves
series z7
z7.displayname Relative scarcity of foreign reserves (activist zone)
series z8
z8.displayname Flexible exchange rate dummy
series z9
z9.displayname Sovereign debt dummies (is debt currently constrained by international markets?)

' Creates and documents exogenous variables

series bandB
bandB.displayname Lower range of the flat Phillips curve
series bandT
bandT.displayname Upper range of the flat Phillips curve
series bot
bot.displayname Bottom value for bank net liquidity ratio
series fcrbgrow_t
fcrbgrow_t.displayname Target rate on foreign T-Bills
series fcrblgrow_t
fcrblgrow_t.displayname Target rate on foreign T-Bonds
series gr_g_natural
gr_g_natural.displayname Natural growth rate of real government expenditures (Long-run rate)
series gr_pr
gr_pr.displayname Growth rate of productivity
series gr_y_row
gr_y_row.displayname Exogenous rate of economic growth - ROW
series n_fe
n_fe.displayname Full Employment level
series ncar
ncar.displayname Normal capital adequacy ratio of banks
series npl_k
npl_k.displayname Proportion of Non Performing Loans
series omegabb
omegabb.displayname Mark-up over the T-bills rate determining the rate on commercial bank CDs (along with variations in nbsr)
series omegabf
omegabf.displayname Premium on corporate bills
series omegablg
omegablg.displayname Spread between long-term(government)interest rate and(government)rate on bills
series omegalcb
omegalcb.displayname Exogenously set premium on discount operations
series omegam
omegam.displayname Exogenous mark-down determining the rate on SA deposits
series op
op.displayname Parameter reflecting a relatively large degree of openness of the economy (as believed by central banker)
series phiave
phiave.displayname Weight of exports (1-phiave = weight of output) in the computation of the sovereign debt to GDP and exports ratio tolerated by international markets
series pi_row
pi_row.displayname Price inflation in ROW
series ra
ra.displayname Random shock to expectations on real sales
series rbg_t
rbg_t.displayname Target Interest rate on bills - set exogenously
series robb_t
robb_t.displayname Target rate of reserve requirements on bank CDs
series rofcmax
rofcmax.displayname Foreign exchange control parameter determining how much of the banks’ own funds can be invested in foreign currency assets
series rog
rog.displayname Minimum target level of NIR to cover for public sector payments to ROW only
series rogmax
rogmax.displayname Maximum sovereign debt to GPD and exports ratio allowed by international markets
series rogps
rogps.displayname Minimum target level of NIR to cover for both public and private sector payments to ROW
series rom1_t
rom1_t.displayname Target rate of reserve requirements on CA deposits
series rom2_t
rom2_t.displayname Target rate of reserve requirements on SA deposits
series sigman
sigman.displayname Normal inventories to sales ratio
series top
top.displayname Top value for bank net liquidity ratio

' Generates parameters

series adjbb
adjbb.displayname Parameter increasing reserve requirements rate on bank CDs depending on sterilization/compensation needs
series adjm1
adjm1.displayname Parameter increasing reserve requirements rate on CA deposits depending on flexibility of exchange rate regime
series adjm2
adjm2.displayname Parameter increasing reserve requirements rate on SA deposits depending on flexibility of exchange rate regime
series alpha1
alpha1.displayname Propensity to Consume out of income
series alpha2
alpha2.displayname Propensity to Consume out of wealth
series beta
beta.displayname Parameter in expectation formations on real sales
series betab
betab.displayname Speed of adjustment of banks own funds
series chicb_t
chicb_t.displayname Reciprocal of average time until GIRs are adjusted to minimum target level (rogps)
series delta
delta.displayname Rate of depreciation of fixed capital
series eps
eps.displayname Parameter in expectation formations on real disposable income
series eps2
eps2.displayname Speed of adjustment of mark-up
series epsb
epsb.displayname Speed of adjustment in expected proportion of non-performing loans
series etan
etan.displayname Speed of adjustment of actual employment to desired employment
series gamma
gamma.displayname Speed of adjustment of inventories to the target level
series gamma0
gamma0.displayname Exogenous parameter in the formation of the real stock of capital
series gammau
gammau.displayname Relation between the utilization rate and the rate of growth of the stock of capital
series lambda10
lambda10.displayname Parameter in households demand for CA deposits
series lambda11
lambda11.displayname Parameter in households demand for CA deposits
series lambda110
lambda110.displayname Parameter in households demand for CA deposits
series lambda12
lambda12.displayname Parameter in households demand for CA deposits
series lambda13
lambda13.displayname Parameter in households demand for CA deposits
series lambda14
lambda14.displayname Parameter in households demand for CA deposits
series lambda15
lambda15.displayname Parameter in households demand for CA deposits
series lambda16
lambda16.displayname Parameter in households demand for CA deposits
series lambda17
lambda17.displayname Parameter in households demand for CA deposits
series lambda18
lambda18.displayname Parameter in households demand for CA deposits
series lambda19
lambda19.displayname Parameter in households demand for CA deposits
series lambda20
lambda20.displayname Parameter in households demand for SA deposits
series lambda21
lambda21.displayname Parameter in households demand for SA deposits
series lambda210
lambda210.displayname Parameter in households demand for SA deposits
series lambda22
lambda22.displayname Parameter in households demand for SA deposits
series lambda23
lambda23.displayname Parameter in households demand for SA deposits
series lambda24
lambda24.displayname Parameter in households demand for SA deposits
series lambda25
lambda25.displayname Parameter in households demand for SA deposits
series lambda26
lambda26.displayname Parameter in households demand for SA deposits
series lambda27
lambda27.displayname Parameter in households demand for SA deposits
series lambda28
lambda28.displayname Parameter in households demand for SA deposits
series lambda29
lambda29.displayname Parameter in households demand for SA deposits
series lambda30
lambda30.displayname Parameter in households demand for T-bills
series lambda31
lambda31.displayname Parameter in households demand for T-bills
series lambda310
lambda310.displayname Parameter in households demand for T-bills
series lambda32
lambda32.displayname Parameter in households demand for T-bills
series lambda33
lambda33.displayname Parameter in households demand for T-bills
series lambda34
lambda34.displayname Parameter in households demand for T-bills
series lambda35
lambda35.displayname Parameter in households demand for T-bills
series lambda36
lambda36.displayname Parameter in households demand for T-bills
series lambda37
lambda37.displayname Parameter in households demand for T-bills
series lambda38
lambda38.displayname Parameter in households demand for T-bills
series lambda39
lambda39.displayname Parameter in households demand for T-bills
series lambda40
lambda40.displayname Parameter in households demand for CDs
series lambda41
lambda41.displayname Parameter in households demand for CDs
series lambda410
lambda410.displayname Parameter in households demand for CDs
series lambda42
lambda42.displayname Parameter in households demand for CDs
series lambda43
lambda43.displayname Parameter in households demand for CDs
series lambda44
lambda44.displayname Parameter in households demand for CDs
series lambda45
lambda45.displayname Parameter in households demand for CDs
series lambda46
lambda46.displayname Parameter in households demand for CDs
series lambda47
lambda47.displayname Parameter in households demand for CDs
series lambda48
lambda48.displayname Parameter in households demand for CDs
series lambda49
lambda49.displayname Parameter in households demand for CDs
series lambda50
lambda50.displayname Parameter in households demand for comm paper
series lambda51
lambda51.displayname Parameter in households demand for comm paper
series lambda510
lambda510.displayname Parameter in households demand for comm paper
series lambda52
lambda52.displayname Parameter in households demand for comm paper
series lambda53
lambda53.displayname Parameter in households demand for comm paper
series lambda54
lambda54.displayname Parameter in households demand for comm paper
series lambda55
lambda55.displayname Parameter in households demand for comm paper
series lambda56
lambda56.displayname Parameter in households demand for comm paper
series lambda57
lambda57.displayname Parameter in households demand for comm paper
series lambda58
lambda58.displayname Parameter in households demand for comm paper
series lambda59
lambda59.displayname Parameter in households demand for comm paper
series lambda60
lambda60.displayname Parameter in households demand for T-bonds
series lambda61
lambda61.displayname Parameter in households demand for T-bonds
series lambda610
lambda610.displayname Parameter in households demand for T-bonds
series lambda62
lambda62.displayname Parameter in households demand for T-bonds
series lambda63
lambda63.displayname Parameter in households demand for T-bonds
series lambda64
lambda64.displayname Parameter in households demand for T-bonds
series lambda65
lambda65.displayname Parameter in households demand for T-bonds
series lambda66
lambda66.displayname Parameter in households demand for T-bonds
series lambda67
lambda67.displayname Parameter in households demand for T-bonds
series lambda68
lambda68.displayname Parameter in households demand for T-bonds
series lambda69
lambda69.displayname Parameter in households demand for T-bonds
series lambda70
lambda70.displayname Parameter in households demand for corp-bonds
series lambda71
lambda71.displayname Parameter in households demand for corp-bonds
series lambda710
lambda710.displayname Parameter in households demand for corp-bonds
series lambda72
lambda72.displayname Parameter in households demand for corp-bonds
series lambda73
lambda73.displayname Parameter in households demand for corp-bonds
series lambda74
lambda74.displayname Parameter in households demand for corp-bonds
series lambda75
lambda75.displayname Parameter in households demand for corp-bonds
series lambda76
lambda76.displayname Parameter in households demand for corp-bonds
series lambda77
lambda77.displayname Parameter in households demand for corp-bonds
series lambda78
lambda78.displayname Parameter in households demand for corp-bonds
series lambda79
lambda79.displayname Parameter in households demand for corp-bonds
series lambda80
lambda80.displayname Parameter in households demand for equities
series lambda81
lambda81.displayname Parameter in households demand for equities
series lambda810
lambda810.displayname Parameter in households demand for equities
series lambda82
lambda82.displayname Parameter in households demand for equities
series lambda83
lambda83.displayname Parameter in households demand for equities
series lambda84
lambda84.displayname Parameter in households demand for equities
series lambda85
lambda85.displayname Parameter in households demand for equities
series lambda86
lambda86.displayname Parameter in households demand for equities
series lambda87
lambda87.displayname Parameter in households demand for equities
series lambda88
lambda88.displayname Parameter in households demand for equities
series lambda89
lambda89.displayname Parameter in households demand for equities
series lambda90
lambda90.displayname Parameter in households demand for foreign-bonds
series lambda91
lambda91.displayname Parameter in households demand for foreign-bonds
series lambda910
lambda910.displayname Parameter in households demand for foreign-bonds
series lambda92
lambda92.displayname Parameter in households demand for foreign-bonds
series lambda93
lambda93.displayname Parameter in households demand for foreign-bonds
series lambda94
lambda94.displayname Parameter in households demand for foreign-bonds
series lambda95
lambda95.displayname Parameter in households demand for foreign-bonds
series lambda96
lambda96.displayname Parameter in households demand for foreign-bonds
series lambda97
lambda97.displayname Parameter in households demand for foreign-bonds
series lambda98
lambda98.displayname Parameter in households demand for foreign-bonds
series lambda99
lambda99.displayname Parameter in households demand for foreign-bonds
series lambdab
lambdab.displayname Parameter determining dividends of banks
series lambdac
lambdac.displayname Parameter in households demand for cash
series lambdagd
lambdagd.displayname Parameter affecting the government’s demand for CA deposits at CB
series lambdam1
lambdam1.displayname Parameter affecting the government’s demand for CA deposits at commercial banks
series lambdarow10
lambdarow10.displayname Parameter affecting the ROW’s demand for sovereign debt (exog. component)
series lambdarow11
lambdarow11.displayname Parameter affecting the ROW’s demand for sovereign debt depending on rate of return
series lambdarow12
lambdarow12.displayname Parameter affecting the ROW’s demand for sovereign debt out of income
series miu0
miu0.displayname Exogenous component in the demand for imports
series miu1
miu1.displayname Parameter in the demand for imports reflecting the effect of changes in relative prices
series miu2
miu2.displayname Parameter in the demand for imports reflecting the effect of changes in domestic income
series omega0
omega0.displayname Parameter influencing the target real wage for workers
series omega1
omega1.displayname Parameter influencing the target real wage for workers
series omega2
omega2.displayname Parameter influencing the target real wage for workers
series omega3
omega3.displayname Speed of adjustment of wages to target value
series psi10
psi10.displayname Parameter in the supply of corporate bonds
series psi11
psi11.displayname Parameter in the supply of corporate bonds
series psi12
psi12.displayname Parameter in the supply of corporate bonds
series psi20
psi20.displayname Parameter in the supply of corporate equities
series psi21
psi21.displayname Parameter in the supply of corporate equities
series psi22
psi22.displayname Parameter in the supply of corporate equities
series psid
psid.displayname Ratio of dividends to net firm profits
series psiu
psiu.displayname Ratio of retained earnings to investment
series sigmabb
sigmabb.displayname Parameter influencing banks’ liability management and, hence, interest rate on bank CDs
series sigmat
sigmat.displayname Target inventories to sales ratio
series stigmabg_t
stigmabg_t.displayname Parameter reflecting the price effect or concern for foreign exchange fluctuations determining changes in the rate of interest undertaken by the authorities
series theta
theta.displayname Parameter in the imports expectation formation process
series theta_b
theta_b.displayname Banks tax rate
series theta_f
theta_f.displayname Corporate tax rate
series theta_h
theta_h.displayname Income tax rate
series ye0
ye0.displayname Exogenous component in the demand for exports
series ye1
ye1.displayname Parameter in the demand for exports reflecting the effect of changes in relative prices
series ye2
ye2.displayname Parameter in the demand for exports reflecting the effect of changes in the ROW’s income

' Initial values for stocks and other variables

' Firms (F)

bfs = 2765497.76648989
blfs = 1348180.16116382
btf_f = 24999507.3133961
cg_f = 1426415.09788591
depa = 12875000
efs = 6182.92556449628
f_f = 29081446.7010815
f_f_t = 23897514.3219711
fd_f = 3108733.08750666
fu_f = 15000000
fu_f_t = 14971698.1132075
gr_k = 0.0387358490566038
i = 17250000
i_k = 1604651.1627907
in = 10750000
in_k = 1257805.57219614
in_k_e = 1200322.2786015
in_k_t = 2366399.52610794
k = 132500000
k_k = 12325581.3953488
ld_f = 34164025.12568
m_k = 2279069.76744186
m_k_e = 1969825.32149621
nf_f = 21968380.485047
ode_f = 73273474.87432
omegablf = 0.05
pblf = 6.66666666666667
pef = 9950
phi = 0.25
phi_t = 0.25
pi = 0.03
ps = 10.75
py = 10.6880028991812
rbf = 0.07
rblf = 0.15
rk = 0.0525
rt_f = 4155687.57219634
s = 122250000
s_k = 11372093.0232558
s_k_e = 11376920.7985959
sigmase = 0.175
t_f = 3031126.82834901
thuc = 8.6
tuc = 8.50927313236626
u = 0.754716981132076
uc = 8.54663092422974
v_f = 35812500
y = 100000000
y_k = 9356284.88720384
y_k = 9356284.88720384
ydhs_f = 16426415.0978859
ydr_f = 15000000

' Households (H)

bbd_h = 4424086.98876675
bfd_h = 2765497.76648989
bgd_h = 3789339.22452879
bgs_h = 3789339.22452879
blfd_h = 1348180.16116382
blgd_h = 1104110.46414809
c_k = 5581395.34883721
cashd_h = 3000000
cg_h = 2549999.99999999
cons = 60000000
efd_h = 6182.92556449628
er = 1
fcblgrowd_h = 2483536.62546015
fcpblgrow = 18.1818181818182
m1h_h = 24332478.4382172
m2d_h = 15484304.4606837
n = 75
n_t = 75
of_b = 4000000
omegat = 101532.14657714
pblg = 10
pd = 10.75
pr = 124750.465162718
rt_h = 5682903.79627724
t_h = 17928115.0159744
v_h = 184500000
v_h_k = 17162790.6976744
vfma_h = 177500000
w = 969241.092077006
wb = 72693081.9057755
ydhs_h = 67050000
ydr_h = 64500000
ydr_h_k = 5504790.69767442
ydr_h_k_e = 5504790.69767442
yp = 82428115.0159744

' Commercial banks (B)

bbs = 4424086.98876675
bcbh_b = 5192940.85901385
bgh_b = 5558725.84743946
bgs_b = 5558725.84743946
bresd_b = 5779585.03893587
bsr = 0.116435369956997
btf_b = 3501641.9573156
car = 0.117082222755811
f_b = 2626231.4679867
f_b_t = 1172859.93038937
fcbgrowh_b = 1045593.01659843
fd_b = 943396.226415094
fu_b = 1500000
fu_b_t = 229463.703974275
lcbd_b = 0
ls = 34164025.12568
m1s = 27832478.4382172
m2s = 15484304.4606837
nbsr = 0.116435369956997
npl = 591965.162974783
npl_k_e = 0.01875
of_b_e = 3448081.26934579
of_b_t = 2959825.81487392
ofmfa_b = 11797259.7230517
rbb = 0.065
rl = 0.124581967189229
rm = 0.02
spread = 0.037667180516285
t_b = 875410.489328899
ydhs_b = 2506442.4069674

' Central Bank (CB)

bcbs = 5192940.85901385
bgh_cb = 5172525.89794972
bgs_cb = 5172525.89794972
bress = 5779585.03893587
cashs = 3000000
f_cb = 1000000
fcbgrowh_cb = 10300000
gds = 1500000
gir = 10300000
girr = 0.398903909389843
lcbs = 0
nir = 10300000
nirr = 0.398903909389843
rbcb = 0.035
rlcb = 0.085
robb = 0.1
robg = 0.20018670410456
rom1 = 0.125
rom2 = 0.12

' Government (G)

bgs = 14438594.9699179
blgs = 1104110.46414809
cg_g = 0
fcblgs = 1680000
fcd = 24000000
fcomegablg = 0.0149999999999999
fcpblg = 14.2857142857143
fcrblg = 0.0699999999999999
fcsdr = 0.6
fp = 0.5
g = 20000000
g_k = 1860465.11627907
gdh_g = 1500000
lcd = 36585443.8660097
m1h_g = 3500000
nrt_g = -1884413.71939691
psbr = 49761.3857445546
rbg = 0.06
rblg = 0.1
sr = 0.344295905572784
stigmabg = 0.0251971980870447
t = 21834652.3336524
td = 60585443.8660097
xr = 1
xrendog = 1

' Rest of the World (ROW)

ca_row = 500000
cg_row = 0
faps_row = -1731841.04708379
fcbgrows = 11345593.0165984
fcblgd_row = 1680000
fcblgrows = 2483536.62546015
fcrbgrow = 0.035
fcrblgrow = 0.055
m = 24500000
ma_row = -3900234.42461433
nrt_row = 0
pm = 10.75
px = 10.75
py_row = 10.7532
rt_row = 1320754.71698113
ta_row = 500000
x = 25000000
x_k = 2325581.39534884
xr_e = 1.02803738317757
y_row_k = 375000000

' Dummy variables

z1 = 0
z10 = 1
z11 = 1
z12 = 0
z13 = 0
z14 = 0
z15 = 0
z16 = 1
z2 = 0
z3 = 0
z4 = 1
z5 = 0
z6 = 0
z7 = 1
z8 = 0
z9 = 0

' Initial values of parameters

adjbb = 1
adjm1 = 1
adjm2 = 1
alpha1 = 0.785
alpha2 = 0.065
beta = 0.5
betab = 0.4
chicb = 0
chicb_t = 0.25
delta = 0.1
eps = 0.5
eps2 = 0.8
epsb = 0.25
etan = 0.6
gamma = 0.15
gamma0 = 0.003
gammau = 0.0425
lambda10 = 0.145319903655779
lambda11 = 0.28208
lambda110 = 0.0475
lambda12 = -0.03526
lambda13 = -0.03526
lambda14 = -0.03526
lambda15 = -0.03526
lambda16 = -0.03526
lambda17 = -0.03526
lambda18 = -0.03526
lambda19 = -0.03526
lambda20 = 0.075
lambda21 = -0.03526
lambda210 = 0.045
lambda22 = 0.07075
lambda23 = -0.00507
lambda24 = -0.00507
lambda25 = -0.00507
lambda26 = -0.00507
lambda27 = -0.00507
lambda28 = -0.00507
lambda29 = -0.00507
lambda30 = 0.0163483899973453
lambda31 = -0.03526
lambda310 = 0.02
lambda32 = -0.00507
lambda33 = 0.07783
lambda34 = -0.00625
lambda35 = -0.00625
lambda36 = -0.00625
lambda37 = -0.00625
lambda38 = -0.00625
lambda39 = -0.00625
lambda40 = 0.019924433739531
lambda41 = -0.03526
lambda410 = 0.02
lambda42 = -0.00507
lambda43 = -0.00625
lambda44 = 0.14958
lambda45 = -0.0206
lambda46 = -0.0206
lambda47 = -0.0206
lambda48 = -0.0206
lambda49 = -0.0206
lambda50 = 0.0105802691069853
lambda51 = -0.03526
lambda510 = 0.0175
lambda52 = -0.00507
lambda53 = -0.00625
lambda54 = -0.0206
lambda55 = 0.17098
lambda56 = -0.02595
lambda57 = -0.02595
lambda58 = -0.02595
lambda59 = -0.02595
lambda60 = 0.0572034064308783
lambda61 = -0.03526
lambda610 = 0
lambda62 = -0.00507
lambda63 = -0.00625
lambda64 = -0.0206
lambda65 = -0.02595
lambda66 = 0.16813
lambda67 = -0.025
lambda68 = -0.025
lambda69 = -0.025
lambda70 = 0.0526358745977021
lambda71 = -0.03526
lambda710 = -0.05
lambda72 = -0.00507
lambda73 = -0.00625
lambda74 = -0.0206
lambda75 = -0.02595
lambda76 = -0.025
lambda77 = 0.13813
lambda78 = -0.01
lambda79 = -0.01
lambda80 = 0.358592165446411
lambda81 = -0.03526
lambda810 = -0.05
lambda82 = -0.00507
lambda83 = -0.00625
lambda84 = -0.0206
lambda85 = -0.02595
lambda86 = -0.025
lambda87 = -0.01
lambda88 = 0.13813
lambda89 = -0.01
lambda90 = 0.264395557025368
lambda91 = -0.03526
lambda910 = -0.05
lambda92 = -0.00507
lambda93 = -0.00625
lambda94 = -0.0206
lambda95 = -0.02595
lambda96 = -0.025
lambda97 = -0.01
lambda98 = -0.01
lambda99 = 0.13813
lambdab = 0.01
lambdac = 0.05
lambdagd = 0.075
lambdam1 = 0.125752365452086
lambdarow10 = 0.000025
lambdarow11 = 0.0015
lambdarow12 = -0.015
miu0 = -1.38
miu1 = 0.70
miu2 = 1
omega0 = -0.25
omega1 = 1
omega2 = 2
omega3 = 0.5
psi10 = 0.25
psi11 = -0.001
psi12 = 0.001
psi20 = 0.75
psi21 = 0.001
psi22 = -0.001
psid = 0.15
psiu = 0.92
sigmabb = 0.02
sigman = 0.175
sigmat = 0.208
stigmabg_t = 0.1
theta = 0.5
theta_b = 0.25
theta_f = 0.25
theta_h = 0.225
ye0 = -5.0125
ye1 = 0.70
ye2 = 1

' Initial values of exogenous variables

bandB = 0.01
bandT = 0.01
bot = 0.12
fcrbgrow_t = 0.035
fcrblgrow_t = 0.055
gr_g_natural = 0.03
gr_pr = 0.03
gr_y_row = 0.03
n_fe = 75
ncar = 0.1
npl_k = 0.02
omegabb = 0.03
omegabf = 0.01
omegablg = 0.065
omegalcb = 0.05
omegam = 0.015
op = 0.35
phiave = 0.95
pi_row = 0.03
ra = 0
rbg_t = 0.035
robb_t = 0.1
rofcmax = 0.3
rog = 0.25
rogmax = 0.95
rogps = 0.75
rom1_t = 0.125
rom2_t = 0.12
top = 0.24

' Creates a model and names it REEs_mod

model REEs_mod

' Government's equations

' Tax receipts - eq. 1
REEs_mod.append t = t_f + t_h + t_b

' Nominal pure government expenditures - eq. 2
REEs_mod.append g = g_k * pd

' Real pure government expenditures - eq. 3
REEs_mod.append g_k = g_k(-1)*(1 + gr_g)

' Growth rate of real government expenditures - eq. 4
REEs_mod.append gr_g = gr_g_natural * (1+(z1 + 0.5*z2 - 0.5*z3 - z4 - 1)*z10)

' Switch variables (Fiscal Policy dummy) - eq. 5
REEs_mod.append z1 = (rog > nirr(-1)) + (nirr(-1) >= rogps)

' Switch variables (Fiscal Policy dummy) - eq. 6
REEs_mod.append z2 = (rog + (3/4 * fp) <= nirr(-1))*(nirr(-1) < rogps)

' Switch variables (Fiscal Policy dummy) - eq. 7
REEs_mod.append z3 = (rog + (1/4 * fp) <= nirr(-1))*(nirr(-1) < rog + (1/2 * fp))

' Switch variables (Fiscal Policy dummy) - eq. 8
REEs_mod.append z4 = (rog <= nirr(-1))*(nirr(-1) < rog + (1/4 * fp))

' Fiscal policy activist zone - eq. 9
REEs_mod.append fp = rogps - rog

' Nominal Government deficit - eq. 10
REEs_mod.append psbr = g - t - nrt_g

' Government net rent transfers - eq. 11
REEs_mod.append nrt_g = f_cb - rbg(-1)*(bgd_h(-1)+ bgh_b(-1)+ bgh_cb(-1)) - blgs(-1) - xr * fcblgs(-1)

' New issues of T-bills (to absorb deficit) - eq. 12
REEs_mod.append bgs = bgs(-1) + psbr + d(gdh_g) + d(m1h_g) - d(blgs)*pblg - xr * d(fcblgs)*fcpblg

' Supply of government bonds - eq. 13
REEs_mod.append blgs = blgd_h

' Rate on government bonds - eq. 14
REEs_mod.append rblg = rbg + omegablg

' Price of long-term bonds - eq. 15
REEs_mod.append pblg = 1/rblg

' Nominal government debt - eq. 16
REEs_mod.append td = lcd + fcd

' Nominal local currency government debt - eq. 17
REEs_mod.append lcd = cashs + bress + (bgs - bgh_cb + bcbs) + blgs * pblg

' Nominal foreign currency government debt - eq. 18
REEs_mod.append fcd = xr * fcblgs * fcpblg

' Seignorage rate - eq. 19
REEs_mod.append sr = (cashs + bress) / ((bgs - bgh_cb + bcbs) + blgs * pblg)

' Capital gains of the government - eq. 20
REEs_mod.append cg_g = - blgs(-1) * d(pblg) - fcblgs(-1) * (d(xr)*fcpblg + d(fcpblg)*xr(-1))

' Government deposits at CB - eq. 21
REEs_mod.append gdh_g = (gdh_g(-1) - d(m1h_g) - psbr + d(blgs)*pblg + xr * d(fcblgs)*fcpblg)*z5 + lambdagd * g *(1-z5)

' Government deposits at commercial banks - eq. 22
REEs_mod.append m1h_g = lambdam1/(1-lambdam1) * m1h_h

' Government deposits dummy - eq. 23
REEs_mod.append z5 = (psbr + lambdagd * g - gdh_g(-1) + d(m1h_g) - d(blgs)*pblg - xr * d(fcblgs)*fcpblg < 0)

' Relative abundance of foreign reserves - eq. 24
REEs_mod.append z6 = (rogps=<nirr(-1))

' Interest rate on treasury bills - set exogenously - eq. 25
REEs_mod.append rbg = rbg_t + stigmabg * z7

' Relative scarcity of foreign reserves (activist zone) - eq. 26
REEs_mod.append z7 = (rog=<nirr(-1))*(nirr(-1)<rogps)

' Flexible exchange rate dummy - eq. 27
REEs_mod.append z8 = (rog>nirr(-1))

' Net International Reserves ratio - eq. 28
REEs_mod.append nirr = nir/(m + rt_row)

' Pass-through motive elasticity - eq. 29
REEs_mod.append stigmabg = stigmabg_t * m(-1)/(pd(-1) * (c_k(-1)+g_k(-1)+i_k(-1)))

' Repatriation motive elasticity - eq. 29A
' REEs_mod.append stigmabg = stigmabg_t * rt_row(-1)/(py(-1) * y_k(-1))

' New issues of sovereign debt - eq. 30
REEs_mod.append fcblgs = fcblgs(-1) - (z7*z9*z10) * (ca_row + faps_row + ma_row)/(xr * fcpblg) + (z7*(1-z9)*z10) * rogmax * x * y /(xr * fcpblg * (phiave * y + (1-phiave) * x)) - (z7*(1-z9)*z10) * fcblgs(-1)

' Gross International Reserve variations - eq. 31
REEs_mod.append fcbgrowh_cb = fcbgrowh_cb(-1) + (z7*z9*z10) * chicb * (rogps * (m + rt_row)/xr - fcbgrowh_cb(-1))+ (z7*(1-z9)*z10)*((ca_row + faps_row + rogmax * x * y /(phiave * y + (1-phiave) * x))/xr - fcpblg * fcblgs(-1)) + (z6*z10)*(ca_row + faps_row)/xr

' Speed of adjustment of Gross International Reserve variations - eq. 32
REEs_mod.append chicb = (chicb(-1) + chicb_t) * (z7*z9*z10)

' Sovereign debt dummies(is debt constrained by market?)- eq. 33
REEs_mod.append z9 = ((chicb_t *(rogps * (m + rt_row) - xr * fcbgrowh_cb(-1)) - (ca_row + faps_row) + xr * fcpblg * fcblgs(-1))<= (rogmax * x * y /(phiave * y + (1-phiave) * x)))

' Sovereign debt ratio - eq. 34
REEs_mod.append fcsdr = xr * fcpblg * fcblgs * (phiave * y + (1-phiave) * x) / (x * y)

' Exchange rate determination - eq. 35
REEs_mod.append xr = xr(-1) *(z6+z7) *(z10) + xrendog * (z8 + (1-z8)*(1-z10))

' Flexible exchange rate taking into account the accumulation of foreign assets by both the private sector and the authorities (ca_row + faps_row + cg_row = 0) - eq. 36
REEs_mod.append xrendog = (xr(-1) * (fcpblgrow * fcblgrows(-1) + fcbgrows(-1) + fcblgd_row(-1)* d(fcpblg) - d(fcpblgrow)* fcpblgrow)- (1 + phi) * ((1 - sigman) * (w/pr)*(y_k(-1)/(y_k(-1)+ m_k(-1))) * x_k + sigman * (1 + rl(-1)) * tuc(-1) * x_k))/((1 + phi) * (1 - sigman) * pm *(m_k(-1)/(y_k(-1)+ m_k(-1))) * x_k + ((fcrbgrow(-1)* fcbgrows(-1)) + fcblgrows(-1)) + fcbgrows(-1) + fcpblgrow * fcblgrows(-1) - pm * m_k - (fcblgd_row(-1))- d(fcbgrowh_b) - fcpblgrow * d(fcblgrowd_h)- fcpblg * fcblgd_row(-1) + xr(-1) * fcpblg * fcblgd_row(-1))

' Flexible exchange rate (ca_row = 0) - eq. 36-A
' REEs_mod.append xrendog = -((1 + phi) * x_k *(1 - sigman) * (w/pr)*(y_k(-1)/(y_k(-1) + m_k(-1))) + (1 + phi) * x_k *sigman*(1 + rl(-1))*tuc(-1))/(fcrbgrow(-1)* fcbgrows(-1) + fcblgrows(-1) - fcblgd_row(-1) - pm * m_k + (1 + phi)*x_k *(1 - sigman) * pm *(m_k(-1)/ (y_k(-1)+ m_k(-1))))

' Openness (Trade/GDP) ratio - eq. 37
REEs_mod.append z10 = (x(-1)+ m(-1) > (op * y(-1)))

' GIR ratio - eq. 38
REEs_mod.append girr = gir / (m + rt_row)

' GIR - eq. 39
REEs_mod.append gir = xr * fcbgrowh_cb

' Foreign currency T-bonds market equilibrium - eq. 40
REEs_mod.append fcblgd_row = fcblgs

' Endogenous premium on fc govt. bonds - eq. 41
REEs_mod.append fcomegablg = fcrblg - fcrblgrow

' Endogenous rate of fc govt. bonds - eq. 42
REEs_mod.append fcrblg = 1/ fcpblg

' Central bank's equations

' Central bank profits - eq. 43
REEs_mod.append f_cb = rbg(-1)*bgh_cb(-1) - rbcb(-1)*bcbs(-1) + rlcb(-1) * lcbs(-1) + xr * (fcrbgrow(-1) * fcbgrowh_cb(-1))

' Central bank’s supply of cash - eq. 44
REEs_mod.append cashs = cashd_h

' Central bank’s supply of reserves - eq. 45
REEs_mod.append bress = bresd_b

' Reserve requirements rate on CA deposits - eq. 46
REEs_mod.append rom1 = rom1_t * (1 + ((z6 - (0.25*z8))* z10))

' Reserve requirements rate on SA deposits - eq. 47
REEs_mod.append rom2 = rom2_t * (1 + ((z6 - (0.25*z8))* z10))

' Reserve requirements rate on bank CDs - eq. 48
REEs_mod.append robb = robb_t * (1 + ((z6 - (0.25*z8))* z10))

' Government deposits credited by central bank - eq. 49
REEs_mod.append gds = gdh_g

' CB buys T-bills it holds - eq. 50
REEs_mod.append bgs_cb = bgh_cb

' Supply of T-bills to households - eq. 51
REEs_mod.append bgs_h = bgd_h

' CB’s demand for bills - eq. 52
REEs_mod.append bgh_cb = (z6+z7) * (bgh_cb(-1) + (1-robg) * d(gir)/gir(-1)) + (1-(z6+z7)) * (cashs + bress + bcbs + gds - gir - lcbs)

' CB’s government bills ratio as determined by actual trade/GDP ratio - eq. 53
REEs_mod.append robg = (x(-1)+ m(-1))/y(-1)

' Supply of central bank CDs (by budget constraint) - eq. 54
REEs_mod.append bcbs = bcbs(-1) + (z6+z7) * (d(gir) + d(bgh_cb) + d(lcbs) - d(cashs) - d(bress) - d(gds))

' Rate on central bank CDs - eq. 55
REEs_mod.append rbcb = rbg

' Supply of loans to banks (discount window) - eq. 56
REEs_mod.append lcbs = lcbd_b

' Central bank discount rate - eq. 57
REEs_mod.append rlcb = rbg + omegalcb

' Firms' equations

' Firms - Real output decisions

' Real output - eq. 58
REEs_mod.append y_k = s_k_e + in_k_e - in_k(-1) - m_k_e

' Expected real sales - eq. 59
REEs_mod.append s_k_e = beta*s_k + (1 - beta)*s_k(-1)*(1 + (gr_pr + ra))

' Expected real imports - eq. 60
REEs_mod.append m_k_e = theta * m_k + (1-theta)* m_k(-1) *(1 + (gr_pr + ra))

' Actual real imports - eq. 61
REEs_mod.append m_k = exp(miu0 - miu1 * log((xr(-1) * pm(-1))/(py(-1))) + miu2 * log(y_k))

' Long-run inventory target - eq. 62
REEs_mod.append in_k_t = sigmat * s_k_e

' Short-run inventory target - eq. 63
REEs_mod.append in_k_e = in_k(-1) + gamma*(in_k_t - in_k(-1))

' Actual real inventories - eq. 64
REEs_mod.append in_k = in_k(-1) + y_k + m_k - s_k - npl/uc

' Actual real sales - eq. 65
REEs_mod.append s_k = c_k + g_k + i_k + x_k

' Real capital stock - eq. 66
REEs_mod.append k_k = k_k(-1)*(1 + gr_k)

' Growth of real capital stock - eq. 67
REEs_mod.append gr_k = gamma0 + gammau*u(-1)

' Capital utilization proxy - eq. 68
REEs_mod.append u = y_k/k_k(-1)

' Real gross investment - eq. 69
REEs_mod.append i_k = d(k_k) + delta*k_k(-1)

' Rate of price inflation - eq. 70
REEs_mod.append pi = d(pd)/pd(-1)

' Value of realized sales - eq. 71
REEs_mod.append s = s_k*ps

' Inventories valued at current cost - eq. 72
REEs_mod.append in = in_k*uc

' Nominal gross investment - eq. 73
REEs_mod.append i = i_k*pd

' Nominal value of fixed capital - eq. 74
REEs_mod.append k = k_k*pd

' Nominal GDP - eq. 75
REEs_mod.append y = s_k*ps - m_k * xr * pm + d(in_k)*uc

' Firms - Costs of production and wage inflation (distribution process)

' Real wage aspirations - eq. 76
REEs_mod.append omegat = exp(omega0 + omega1*log(pr) + omega2*log(er + z11*(1 - er) - z12*bandT + z13*bandB))

' Employment rate - eq. 77
REEs_mod.append er = n(-1)/n_fe

' Bargaining and employment (inelastic segment) - eq. 78
REEs_mod.append z11 = (er>=(1-bandB))*(er<=(1+bandT))

' Bargaining and employment (inflationary segment)- eq. 79
REEs_mod.append z12 = (er>(1+bandT))

' Bargaining and employment (deflationary segment) - eq. 80
REEs_mod.append z13 = (er<(1-bandB))

' Nominal wage - eq. 81
REEs_mod.append w = w(-1) + omega3*(omegat*pd(-1) - w(-1))

' Labour productivity - eq. 82
REEs_mod.append pr = pr(-1)*(1 + gr_pr)

' Desired employment - eq. 83
REEs_mod.append n_t = y_k/pr

' Actual employment - eq. 84
REEs_mod.append n = n(-1) + etan*(n_t - n(-1))

' Nominal wage bill - eq. 85
REEs_mod.append wb = n*w

' Actual unit cost - eq. 86
REEs_mod.append uc = (wb + m)/(s_k)

' Trend unit cost - eq. 87
REEs_mod.append tuc = (w/pr)*(y_k(-1)/(y_k(-1)+ m_k(-1))) + (xr * pm)*(m_k(-1)/ (y_k(-1)+ m_k(-1)))

' Trend historic unit cost - eq. 88
REEs_mod.append thuc = (1 - sigman)*tuc + sigman*(1 + rl(-1))*tuc(-1)

' Firms - Pricing

' Mark-up sales price - eq. 89
REEs_mod.append ps = (1 + phi)*thuc

' Domestic sales price - eq. 90
REEs_mod.append pd = (s - x)/ (s_k - x_k)

' Export price - eq. 91
REEs_mod.append px = ps

' Export price - eq. 91-A
' REEs_mod.append px = xr * pm

' GPD deflator - eq. 92
REEs_mod.append py = y/y_k

' Actual mark-up - eq. 93
REEs_mod.append phi = phi(-1) + eps2*(phi_t(-1) - phi(-1))

' Ideal mark-up - eq. 94
REEs_mod.append phi_t = f_f_t / hc_e

' Expected historic unit cost - eq. 95
REEs_mod.append hc_e = (1 - sigmase) * uc * s_k_e + sigmase*(1 + rl(-1)) * uc(-1) * s_k_e

' Opening inventories to expected sales ratio - eq. 96
REEs_mod.append sigmase = in_k(-1)/s_k_e

' Target net profits of firms - eq. 97
REEs_mod.append f_f_t = (fu_f_t - (theta_f * depa) + fd_f)/(1- theta_f) + rt_f - rl(-1) * npl

' Planned retained earning of firms - eq. 98
REEs_mod.append fu_f_t = psiu*i(-1)

' Dividends of firms - eq. 99
REEs_mod.append fd_f = psid*nf_f(-1)

' Firms - Financial considerations and portfolio decisions (Liquidity Preference, Preference for longer terms)

' Realized gross entrepreneurial profits - eq. 100
REEs_mod.append f_f = s - m - wb + d(in) - rl(-1) * in(-1)

' Realized gross enterpreneurial profits - eq. 100A
' REEs_mod.append f_f = s - ((1 - sigmas)* s_k * uc + (1 + rl(-1))* sigmas * s_k * uc(-1))

' The equation above requires definition of opening inventories to sales ratio
' REEs_mod.append sigmas = in_k(-1)/s_k

' Realized before tax profits of firms - eq. 101
REEs_mod.append btf_f = f_f - rt_f + rl(-1) * npl

' Firms’ rent payments - eq. 102
REEs_mod.append rt_f = rbf(-1) * bfs(-1) + blfs(-1) + rl(-1) * (ld_f(-1)- in(-1))

' Non-performing loans default - eq. 103
REEs_mod.append npl = npl_k * ld_f(-1)

' Realized after tax profits - eq. 104
REEs_mod.append nf_f = btf_f - t_f

' Corporate Tax - eq. 105
REEs_mod.append t_f = theta_f * (btf_f - depa)

' Capital depreciation allowances - eq. 106
REEs_mod.append depa = delta * pd * k_k(-1)

' Retained earnings of firms - eq. 107
REEs_mod.append fu_f = nf_f - fd_f

' Nominal regular disposable income of firms - eq. 108
REEs_mod.append ydr_f = fu_f

' Capital gains of firms - eq. 109
REEs_mod.append cg_f = d(pd) * k_k(-1) - d(pblf) * blfs(-1) - d(pef) * efs(-1)

' Haig-Simons disposable income of firms - eq. 110
REEs_mod.append ydhs_f = ydr_f + cg_f

' Firms’ net value - eq. 111
REEs_mod.append v_f = v_f(-1) + ydhs_f + npl

' Demand for loans by firms - eq. 112
REEs_mod.append ld_f = ld_f(-1) + i + d(in) - fu_f - d(ode_f) - npl

' Firms’ other debt equity - eq. 113
REEs_mod.append ode_f = ode_f(-1) + d(bfs)+ d(blfs) * pblf + d(efs) * pef

' Supply of commercial paper - eq. 114
REEs_mod.append bfs = bfd_h

' Supply of corporate bonds - eq. 115
REEs_mod.append blfs = blfs(-1) + ((((1-psiu) * i(-1)) - d(bfs))/pblf) * (psi10 + psi12 * rblf(-1) + psi12 * rk(-1))

' Supply of corporate equities - eq. 116
REEs_mod.append efs = efs(-1) + ((((1-psiu) * i(-1)) - d(bfs))/pef) * (psi20 + psi21 * rblf(-1) + psi22 * rk(-1))

' Rate on corporate bills - eq. 117
REEs_mod.append rbf = rbb + omegabf

' Premium on corporate bonds - eq. 118
REEs_mod.append omegablf = (1/pblf) - (1/pblg)

' Rate on corporate bonds - eq. 119
REEs_mod.append rblf = rblg + omegablf

' Equilibrium condition market for corporate bonds - eq. 120
REEs_mod.append blfd_h = blfs

' Dividend yield of firms - eq. 121
REEs_mod.append rk = fd_f /(pef(-1) * efs(-1))

' Equilibrium condition market for corporate equities - eq. 122
REEs_mod.append efd_h = efs

' Households' equations

' Personal income - eq. 123
REEs_mod.append yp = wb + fd_f + fd_b + rt_h

' Households’ rent receipts - eq. 124
REEs_mod.append rt_h = rm(-1)* m2d_h(-1) + rbg(-1)*bgd_h(-1) + rbb(-1)*bbd_h(-1) + rbf(-1)*bfd_h(-1) + blgd_h(-1) + blfd_h(-1) + xr * (fcblgrowd_h(-1))

' Income taxes from households - eq. 125
REEs_mod.append t_h = theta_h*yp

' Regular disposable income - eq. 126
REEs_mod.append ydr_h = yp - t_h

' Haig-Simons disposable income - eq. 127
REEs_mod.append ydhs_h = ydr_h + cg_h

' Capital gains of households - eq. 128
REEs_mod.append cg_h = d(pblg)*blgd_h(-1) + d(pblf)*blfd_h(-1) + d(pef)*efd_h(-1) + d(of_b) + fcblgrowd_h(-1) * ((d(xr)*fcpblgrow) + (d(fcpblgrow)*xr(-1)))

' Households’ nominal wealth - eq. 129
REEs_mod.append v_h = v_h(-1) + ydhs_h - cons

' Real stock of wealth - eq. 130
REEs_mod.append v_h_k = v_h/pd

' Consumption - eq. 131
REEs_mod.append cons = c_k*pd

' Real Consumption - eq. 132
REEs_mod.append c_k = alpha1*(ydr_h_k_e) + alpha2*v_h_k(-1)

' Expected real regular disposable income of households - eq. 133
REEs_mod.append ydr_h_k_e = eps*ydr_h_k + (1 - eps)*(ydr_h_k(-1)*(1 + gr_pr))

' Real regular disposable income - eq. 134
REEs_mod.append ydr_h_k = ydr_h/pd - d(pd)*v_h_k(-1)/pd

' Households - Portfolio decisions (Local and Foreign currency Liquidity Preference, Preference for shorter periods, and Preference for Local and Foreign Assets)

' Demand for CA deposits - inactive for adding-up constraint
' REEs_mod.append m1h_h = vfma_h(-1)*(lambda10 + lambda12*rm(-1) + lambda13*rbg(-1) + lambda14*rbb(-1) + lambda15*rbf(-1) + lambda16*rblg(-1) + lambda17*rblf(-1)+ lambda18*rk(-1) + lambda19*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda110*ydr_h/v_h)

' Demand for SA deposits - eq. 135
REEs_mod.append m2d_h = vfma_h(-1)*(lambda20 + lambda22*rm(-1) + lambda23*rbg(-1) + lambda24*rbb(-1) + lambda25*rbf(-1) + lambda26*rblg(-1) + lambda27*rblf(-1)+ lambda28*rk(-1) + lambda29*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda210*ydr_h/v_h)

' Demand for T-bills - eq. 136
REEs_mod.append bgd_h = (vfma_h(-1)*(lambda30 + lambda32*rm(-1) + lambda33*rbg(-1) + lambda34*rbb(-1) + lambda35*rbf(-1) + lambda36*rblg(-1) + lambda37*rblf(-1)+ lambda38*rk(-1) + lambda39*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda310*ydr_h/v_h)) * (1-z5) + bgd_h(-1) * z5

' Demand for bank CDs - eq. 137
REEs_mod.append bbd_h = vfma_h(-1)*(lambda40 + lambda42*rm(-1) + lambda43*rbg(-1) + lambda44*rbb(-1) + lambda45*rbf(-1) + lambda46*rblg(-1) + lambda47*rblf(-1)+ lambda48*rk(-1) + lambda49*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda410*ydr_h/v_h)

' Demand for commercial paper - eq. 138
REEs_mod.append bfd_h = vfma_h(-1)*(lambda50 + lambda52*rm(-1) + lambda53*rbg(-1) + lambda54*rbb(-1) + lambda55*rbf(-1) + lambda56*rblg(-1) + lambda57*rblf(-1)+ lambda58*rk(-1) + lambda59*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda510*ydr_h/v_h)

' Demand for government bonds - eq. 139
REEs_mod.append blgd_h = (vfma_h(-1)/pblg)*(lambda60 + lambda62*rm(-1) + lambda63*rbg(-1) + lambda64*rbb(-1) + lambda65*rbf(-1) + lambda66*rblg(-1) + lambda67*rblf(-1)+ lambda68*rk(-1) + lambda69*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda610*ydr_h/v_h)

' Demand for (Price of) corporate bonds - eq. 140
REEs_mod.append pblf = (vfma_h(-1)/ blfd_h)*(lambda70 + lambda72*rm(-1) + lambda73*rbg(-1) + lambda74*rbb(-1) + lambda75*rbf(-1) + lambda76*rblg(-1) + lambda77*rblf(-1)+ lambda78*rk(-1) + lambda79*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda710*ydr_h/v_h)

' Demand for corporate equities - eq. 141
REEs_mod.append pef = (vfma_h(-1)/ efd_h)*(lambda80 + lambda82*rm(-1) + lambda83*rbg(-1) + lambda84*rbb(-1) + lambda85*rbf(-1) + lambda86*rblg(-1) + lambda87*rblf(-1)+ lambda88*rk(-1) + lambda89*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda810*ydr_h/v_h)

' Demand for foreign government bonds - eq. 142
REEs_mod.append fcblgrowd_h =(vfma_h(-1)/(xr(-1)* fcpblgrow))*(lambda90 + lambda92*rm(-1) + lambda93*rbg(-1) + lambda94*rbb(-1) + lambda95*rbf(-1) + lambda96*rblg(-1) + lambda97*rblf(-1)+ lambda98*rk(-1) + lambda99*((xr_e * (1+fcrblgrow(-1))/xr(-1))-1) + lambda910*ydr_h/v_h)

' CA deposits - as a residual - eq. 143
REEs_mod.append m1h_h = vfma_h - m2d_h - bgd_h - bbd_h - bfd_h - pblg*blgd_h - pblf*blfd_h - pef*efd_h - xr * fcpblgrow *fcblgrowd_h

' Households' demand for cash - eq. 144
REEs_mod.append cashd_h = lambdac*cons

' Investible wealth - eq. 145
REEs_mod.append vfma_h = v_h - cashd_h - of_b

' Investible wealth - eq. 145A
' REEs_mod.append vfma_h = m1h_h + m2d_h + bgd_h + bbd_h + bfd_h + pblg*blgd_h + pblf*blfd_h + pef*efd_h + xr * fcpblgrow *fcblgrowd_h

' Commercial banks' equations

' Bank reserve requirements - eq. 146
REEs_mod.append bresd_b = rom1*m1s + rom2*m2s + robb*bbs

' Bank CA deposits supplied on demand - eq. 147
REEs_mod.append m1s = m1h_h + m1h_g

' Bank SA deposits supplied on demand - eq. 148
REEs_mod.append m2s = m2d_h

' Bank CDs supplied on demand - eq. 149
REEs_mod.append bbs = bbd_h

' T-bills supplied to banks - eq. 150
REEs_mod.append bgs_b = bgs - bgs_h - bgs_cb

' The system’s redundant equation - eq. 150-A
' REEs_mod.append bgs_b = bgh_b

' Effective holding of T-bills (residual) - eq. 151
REEs_mod.append bgh_b = of_b + m1s + m2s + bbs + lcbd_b - bresd_b - ls - bcbh_b -(xr*fcbgrowh_b)

' Effective holding of CB bills (CDs) - eq. 152
REEs_mod.append bcbh_b = bcbs

' Effective holding of foreign T-bills - eq. 153
REEs_mod.append fcbgrowh_b = rofcmax*(of_b/xr)

' Banks’ speculative assets - eq. 154
REEs_mod.append ofmfa_b = of_b + m1s + m2s + bbs + lcbd_b - bresd_b - ls

' Interest rate on SA deposits - eq. 155
REEs_mod.append rm = rbg - omegam

' Interest rate on bank CDs - eq. 156
REEs_mod.append rbb = rbg + omegabb + sigmabb * (z14-z15)

' Mechanism for determining changes to the interest rate on bank CDs - eqs 157
REEs_mod.append z14 = (nbsr(-1)<bot)

' Mechanism for determining changes to the interest rate on bank CDs - eqs 158
REEs_mod.append z15 = (nbsr(-1)>top)

' Net secondary reserves ratio - eq. 159
REEs_mod.append nbsr = (bgh_b + bcbh_b - lcbd_b)/(m1s + m2s + bbs)

' Discount operations function - eq. 160
REEs_mod.append lcbd_b = (bot * (m1s + m2s + bbs) - (bgh_b + bcbh_b - lcbd_b)) * z16

' Discount operation dummy - eq. 161
REEs_mod.append z16 = (nbsr<bot)

' Gross secondary reserves ratio - eq. 162
REEs_mod.append bsr = (bgh_b + bcbh_b)/( m1s + m2s + bbs)

' Loans to firms supplied on demand - eq. 163
REEs_mod.append ls = ld_f

' Commercial banks - Spread and interest rates

' Loan interest rate - eq. 164
REEs_mod.append rl = rm + spread

' Long-run own funds target - eq. 165
REEs_mod.append of_b_t = ncar*(ls(-1))

' Short-run own funds target - eq.166
REEs_mod.append of_b_e = of_b(-1) + betab*(of_b_t - of_b(-1))

' Target retained earning of banks - eq. 167
REEs_mod.append fu_b_t = of_b_e - of_b(-1) + npl_k_e*ls(-1)

' Expected proportion of non-performing loans - eq. 168
REEs_mod.append npl_k_e = epsb*npl_k_e(-1)+(1-epsb)*npl_k(-1)

' Dividends of banks - eq. 169
REEs_mod.append fd_b = lambdab*y(-1)

' Net target profits of banks - eq. 170
REEs_mod.append f_b_t = (fu_b_t + fd_b)

' Actual net profits of banks - eq. 171
REEs_mod.append f_b = btf_b - t_b

' Actual gross profits of banks - eq. 172
REEs_mod.append btf_b = rbg(-1)*bgh_b(-1) + rbcb(-1)*bcbh_b(-1) + rl(-1)*(ls(-1) - npl) + xr*fcrbgrow(-1)*fcbgrowh_b(-1)- rm(-1)*m2s(-1) - rbb(-1)*bbs(-1) - rlcb(-1)*lcbd_b(-1)

' Banks’ income tax payments - eq. 173
REEs_mod.append t_b = btf_b * theta_b

' Spread over deposit rate - eq. 174
REEs_mod.append spread = (f_b_t/(1-theta_b) - rbg(-1)*bgh_b(-1) - rbcb(-1)*bcbh_b(-1) - xr_e *fcrbgrow(-1)*fcbgrowh_b(-1)+ rm(-1)*(m2s(-1) - (1 - npl_k_e)*ls(-1)) + rbb(-1)*bbs(-1) + rlcb(-1)*lcbd_b(-1))/((1 - npl_k_e)*ls(-1))

' Actual retained earnings - eq. 175
REEs_mod.append fu_b = f_b - fd_b

' Haig-Simons disposable income - eq. 176
REEs_mod.append ydhs_b = fu_b + d(xr)*fcbgrowh_b(-1)

' Own funds of banks - eq. 177
REEs_mod.append of_b = of_b(-1) + ydhs_b - npl

' Actual capital capacity ratio - eq. 178
REEs_mod.append car = of_b/ls

' Rest of the world's equations

' Real exports - eq. 179
REEs_mod.append x_k = exp(ye0 - ye1*log((px(-1)/(xr(-1)*py_row(-1))))+ ye2*log(y_row_k))

' Growth in the ROW - eq. 180
REEs_mod.append y_row_k = y_row_k(-1)*(1+gr_y_row)

' Rate of price inflation ROW - eq. 181
REEs_mod.append py_row = py_row(-1)*(1+pi_row)

' Exports - eq. 182
REEs_mod.append x = px*x_k

' Price of imports - eq. 183
REEs_mod.append pm = py_row

' Imports - eq. 184
REEs_mod.append m = xr * pm * m_k

' Trade account - eq. 185
REEs_mod.append ta_row = x-m

' Current account - eq. 186
REEs_mod.append ca_row = ta_row + nrt_row

' Net rent transfers to ROW - eq. 187
REEs_mod.append nrt_row = xr * ((fcrbgrow(-1)* fcbgrows(-1)) + fcblgrows(-1)) - rt_row

' Rents paid to ROW - eq. 188
REEs_mod.append rt_row = xr * (fcblgd_row(-1))

' ROW’s supply of foreign currency T-bills - eq. 189
REEs_mod.append fcbgrows = fcbgrowh_cb + fcbgrowh_b

' ROW’s supply foreign currency govt. bonds - eq. 190
REEs_mod.append fcblgrows = fcblgrowd_h

' ROW’s rate on T-Bills (International short-term rate) - eq. 191
REEs_mod.append fcrbgrow = fcrbgrow_t

' ROW’s rate on T-Bonds (International long-term rate) - eq. 192
REEs_mod.append fcrblgrow = fcrblgrow_t

' ROW’s price of treasury bonds - eq. 193
REEs_mod.append fcpblgrow = (1/fcrblgrow)

' ROW’s demand for local T-bonds - eq. 194
REEs_mod.append fcpblg = (fcpblg(-1) * fcblgd_row + (z7*z9*z10) * ((lambdarow10 + lambdarow11 * fcrblg(-1) + lambdarow12 * fcrblgrow(-1)) * py_row(-1) * y_row_k(-1) * gr_y_row))/ fcblgd_row

' Capital gains from ROW - eq. 195
REEs_mod.append cg_row = d(xr)*fcbgrows(-1) + fcblgrows(-1)*(d(xr)*fcpblgrow +d(fcpblgrow)*xr(-1)) - fcblgd_row(-1)*(d(xr)*fcpblg +d(fcpblg)*xr(-1))

' Net International Reserves - eq. 196
REEs_mod.append nir = gir

' Private financial account balance - eq. 197
REEs_mod.append faps_row = - xr * d(fcbgrowh_b) - xr * fcpblgrow * d(fcblgrowd_h)

' Monetary account balance - eq. 198
REEs_mod.append ma_row = - xr * d(fcbgrowh_cb)

' Expected exchange rate (avg.) - eq. 199
REEs_mod.append xr_e = xrendog(-1)*(1+rblg(-1))/(1+fcrblg(-1))

' end of GROWTH model

' Select the baseline scenario

REEs_mod.scenario baseline

' Set simulation sample
smpl 1947 @last

' Solve the model for the current sample

REEs_mod.solve(i=p)

' Generates groups of various series
group flows t_0 g_0 g_k_0 psbr_0 nrt_g_0 cg_g_0 f_cb_0 y_k_0 s_k_e_0 m_k_e_0 m_k_0 s_k_0 i_k_0 s_0 i_0 y_0 f_f_t_0 fu_f_t_0 fd_f_0 f_f_0 btf_f_0 rt_f_0 nf_f_0 t_f_0 depa_0 fu_f_0 ydr_f_0 cg_f_0 ydhs_f_0 y_k_0 rt_h_0 t_h_0 ydr_h_0 ydhs_h_0 cg_h_0 cons_0 c_k_0 ydr_h_k_e_0 ydr_h_k_0 fu_b_t_0 fd_b_0 f_b_t_0 f_b_0 btf_b_0 t_b_0 fu_b_0 ydhs_b_0 x_k_0 y_row_k_0 x_0 m_0 ta_row_0 ca_row_0 nrt_row_0 rt_row_0 cg_row_0 faps_row_0 ma_row_0

group balancefirms in_0 k_0 -bfs_0 -pblf_0*blfs_0 -ld_f_0 -pef_0*efs_0 v_f_0 ydhs_f_0 cg_f_0 npl_0

group inventories in_0 uc_0 in_k_0 y_k_0 m_k_0 s_k_0 npl_0/uc_0

group balancehouseholds cashd_h_0 m1h_h_0 m2d_h_0 bgd_h_0 bbd_h_0 bfd_h_0 pblg_0*blgd_h_0 pblf_0*blfd_h_0 pef_0*efd_h_0 of_b_0 fcpblgrow_0*fcblgrowd_h_0 v_h_0 ydhs_h_0 cg_h_0

group balancebanks bresd_b_0 -m1s_0 -m2s_0 bgh_b_0 bcbh_b_0 -bbs_0 ls_0 -lcbd_b_0 -of_b_0 xr*fcbgrowh_b_0

group balancecb -cashs_0 -bress_0 -gds_0 bgh_cb_0 -bcbs_0 lcbs_0 xr*fcbgrowh_cb_0

group balancegov gdh_g_0 m1h_g_0 -bgs_0 -pblg*blgs_0 -xr*fcpblg*fcblgs_0

group balancerow -xr*fcbgrows_0 -xr*fcpblgrow*fcblgrows_0 xr*fcpblg*fcblgd_row_0

group rates rm_0 rl_0 rlcb_0 rbg_0 rbcb_0 rbb_0 rbf_0 rblg_0 rblf_0 rk_0 fcrblg_0 fcrblgrow_0

group financialprices pblg_0 pblf_0 pef_0 fcpblg_0 fcpblgrow_0

group dummies z1_0 z2_0 z3_0 z4_0 z5_0 z6_0 z7_0 z8_0 z9_0 z10_0 z11_0 z12_0 z13_0 z14_0 z15_0 z16_0

group netincome ydr_h_0/y_0 fu_f_0/y_0 fu_b_0/y_0 f_cb_0/y_0 t_0/y_0

group stockflowconsumption v_h_0/ydr_h_0 v_h_0/ydhs_h_0 ((1-alpha1)/alpha2)-1

group growthofhouseholdwealth v_h_0/v_h_0(-1) cons_0/cons_0(-1)

group proportions cons_0/y_0 c_k_0/y_k_0 i_0/y_0 i_k_0/y_k_0 (in_0-in_0(-1))/y_0 (in_k_0-in_k_0(-1))/y_k_0 g_0/y_0 g_k_0/y_k_0

group householdsmain cons_0 ydr_h_0 ydhs_h_0 cg_h_0

group equitycapital pef_0*efs_0/k_0 pef_0*efs_0/(k_0+in_0)

group foreigndebt fcpblg_0 fcpblgrow_0 fcrblg_0 fcrblgrow_0 fcblgs_0 fcblgd_row_0 z7_0 z9_0 z10_0 z6_0 ca_row_0+ma_row_0+faps_row_0

group initialfirms bfs_0 btf_f_0 in_0 k_0 ode_f_0 pblf_0 blfs_0 pef_0 efs_0 v_f_0 y_0 rbf_0 rblf_0 rk_0 phi_0 phi_t_0 u_0 k_k_0 g_k_0 y_k_0 s_k_0 m_k_0 uc_0 tuc_0 thuc_0 in_k_0 f_f_t_0 fd_f_0 fu_f_0 fu_f_t_0 gr_k_0 i_0 i_k_0 ps_0 pi_0 s_0 s_k_e_0 y_0 y_k_0 depa_0 efs_0 cg_f_0 f_f_0 in_k_e_0 ld_f_0 m_k_e_0 nf_f_0 omegablf_0 py_0 rt_f_0 sigmase_0 t_f_0 ydhs_f_0 ydr_f_0

group initialhouseholds c_k_0 cons_0 er_0 bbd_h_0 bfd_h_0 bgd_h_0 bgs_h_0 cashd_h_0 fcpblgrow_0 fcblgrowd_h_0 m1h_h_0 m2d_h_0 of_b_0 blfd_h_0 pblg_0 blgd_h_0 efd_h_0 v_h_0 vfma_h_0 pr_0 n_0 n_t_0 w_0 omegat_0 pd_0 wb_0 ydr_h_0 ydr_h_k_0 ydr_h_k_e_0 yp_0 cg_h_0 rt_h_0 t_h_0 v_h_k_0 ydhs_h_0

group initialbanks spread_0 car_0 bsr_0 nbsr_0 f_b_t_0 f_b_0 fd_b_0 fu_b_0 bbs_0 bcbh_b_0 bgh_b_0 bgs_b_0 bresd_b_0 fcbgrowh_b_0 lcbd_b_0 ls_0 m1s_0 m2s_0 of_b_0 ofmfa_b_0 rl_0 rm_0 rbb_0 npl_0 f_f_0 npl_k_e_0 fu_b_t_0 btf_b_0 of_b_e_0 of_b_t_0 t_b_0 ydhs_b_0

group initialcb lcbs_0 gds_0 fcbgrowh_cb_0 cashs_0 bress_0 bgh_cb_0 bgs_cb_0 bcbs_0 gir_0 nir_0 nirr_0 girr_0 rlcb_0 rbcb_0 f_cb_0 robb_0 robg_0 rom1_0 rom2_0

group initialgov bgs_0 fcpblg_0 fcblgs_0 gdh_g_0 m1h_g_0 blgs_0 rbg_0 rblg_0 xr_0 g_0 g_k_0 psbr_0 t_0 nrt_g_0 cg_g_0 fcblgs_0 fcd_0 fcomegablg_0 fcrblg_0 fcsdr_0 fp_0 lcd_0 stigmabg_0 td_0

group initialrow fcbgrows_0 fcblgd_row_0 fcblgrows_0 x_0 px_0 py_row_0 m_0 pm_0 fcrblgrow_0 fcrbgrow_0 y_row_k_0 ca_row_0 cg_row_0 faps_row_0 ma_row_0 nrt_row_0 rt_row_0 ta_row_0 x_k_0 xr_e_0

group competitiveness w_0/pr_0 y_k_0/(y_k_0 + m_k_0) m_k_0/(y_k_0 + m_k_0) px_0/py_row_0 pm_0/py_0

group externalbalance ca_row_0/y_0 ta_row_0/y_0 nrt_row_0/y_0 rt_row_0/y_0 x_0/y_0 m_0/y_0

group fiscalbalance t_0/y_0 g_0/y_0 nrt_g_0/y_0 psbr_0/y_0 fcd_0/y_0 lcd_0/y_0

group giraccumulation (rogps * (m_0 + rt_row_0)/xr_0 - fcbgrowh_cb_0(-1)) z7_0*z9_0*z10_0 ((ca_row_0 + faps_row_0 + rogmax * x_0 * y_0 /(phiave * y_0 + (1-phiave) * x_0))/xr_0 - fcpblg_0 * fcblgs_0(-1)) (z7_0*(1-z9_0)*z10_0) (ca_row_0 + faps_row_0)/xr_0 (z6_0*z10_0)

group netfinancialwealth cashd_h_0 cashs_0 (cashs_0/cashd_h_0-1) bresd_b_0 bress_0 (bress_0/bresd_b_0-1) gdh_g_0 gds_0 (gds_0/gdh_g_0-1) m1h_g_0 m1h_h_0 m1s_0 (m1s_0/(m1h_g_0+m1h_h_0)-1) m2d_h_0 m2s_0 (m2s_0/m2d_h_0-1) bgd_h_0 bgh_b_0 bgh_cb_0 bgs_0 (bgs_0/(bgd_h_0+bgh_b_0+bgh_cb_0)-1) bcbh_b_0 bcbs_0 (bcbs_0/bcbh_b_0-1)bfd_h_0 bfs_0 (bfs_0/bfd_h_0-1) blgd_h_0 blgs_0 (blgs_0/blgd_h_0-1) blfd_h_0 blfs_0 (blfs_0/blfd_h_0-1) ld_f_0 ls_0 (ls_0/ld_f_0-1) efd_h_0 efs_0 (efs_0/efd_h_0-1) fcbgrowh_b_0 fcbgrowh_cb_0 fcbgrows_0 (fcbgrows_0/(fcbgrowh_b_0+fcbgrowh_cb_0)-1) fcblgrowd_h_0 fcblgrows_0 (fcblgrows_0/fcblgrowd_h_0-1) fcblgd_row_0 fcblgs_0 (fcblgs_0/fcblgd_row_0-1)

group contributiontogrowth (y_k_0-y_k_0(-1))/y_k_0(-1) (c_k_0-c_k_0(-1))/y_k_0(-1) (i_k_0-i_k_0(-1))/y_k_0(-1) (in_k_0-in_k_0(-1)-in_k_0(-1)+in_k_0(-2))/y_k_0(-1) (g_k_0-g_k_0(-1))/y_k_0(-1) (x_k_0-x_k_0(-1))/y_k_0(-1) -(m_k_0-m_k_0(-1))/y_k_0(-1)

group governmentassets m1h_g_0/(m1s_0+m2s_0+bbs_0) gdh_g_0/gir_0 m1h_g_0/(m1h_g_0+ gdh_g_0)

group netrents nrt_g_0 -rt_f_0+rl_0(-1)*(npl_0-in_0(-1)) rt_h_0 btf_b_0 -nrt_row_0

group nrtg f_cb_0 -rbg_0(-1)*bgs_0(-1) -blgs_0(-1) -xr_0*fcblgs_0(-1)

group rtf rbf_0(-1)*bfs_0(-1) blfs_0(-1) rl_0(-1)*ld_f_0(-1) -rl_0(-1)*in_0(-1)

group rth rm_0(-1)*m2d_h_0(-1) rbg_0(-1)*bgd_h_0(-1) rbb_0(-1)*bbd_h_0(-1) rbf_0(-1)*bfd_h_0(-1) blgd_h_0(-1) blfd_h_0(-1) xr_0*(fcblgrowd_h_0(-1))

group btfb rbg_0(-1)*bgh_b_0(-1) rbcb_0(-1)*bcbh_b_0(-1) rl_0(-1)*ls_0(-1) -rl_0(-1)*npl xr*fcrbgrow_0(-1)*fcbgrowh_b_0(-1) -rm_0(-1)*m2s_0(-1) -rbb_0(-1)*bbs_0(-1) -rlcb_0(-1)*lcbd_b_0(-1)

group fcb rbg_0(-1)*bgh_cb_0(-1) -rbcb_0(-1)*bcbs_0(-1) rlcb_0(-1)*lcbs_0(-1) xr*(fcrbgrow_0(-1)*fcbgrowh_cb_0(-1))

' Generates graphs of various series

graph employmentrate er_0
employmentrate.options linepat
employmentrate.setelem(1) lcolor(green) lwidth(2) lpat(2)
employmentrate.name(1) Employment rate
employmentrate.addtext(t,just(c),just(c)) Figure BL.A: Evolution of the employment rate

graph domesticdemand (i_k_0/i_k_0(-1)-1)*100 (y_k_0/y_k_0(-1)-1)*100 (c_k_0/c_k_0(-1)-1)*100 (g_k_0/g_k_0(-1)-1)*100
domesticdemand.options linepat
domesticdemand.setelem(1) lcolor(blue) lwidth(2) lpat(1)
domesticdemand.setelem(2) lcolor(green) lwidth(2) lpat(2)
domesticdemand.setelem(3) lcolor(red) lwidth(2) lpat(3)
domesticdemand.setelem(4) lcolor(black) lwidth(2) lpat(4)
domesticdemand.name(1) Real fixed investment
domesticdemand.name(2) Real output
domesticdemand.name(3) Real consumption
domesticdemand.name(4) Real government expenditures
domesticdemand.addtext(t,just(c),just(c)) Figure BL.B: Evolution of consumption, investment, government expenditures and output

graph netexports (x_k_0/x_k_0(-1)-1)*100 (y_k_0/y_k_0(-1)-1)*100 (m_k_0/m_k_0(-1)-1)*100
netexports.options linepat
netexports.setelem(1) lcolor(blue) lwidth(2) lpat(1)
netexports.setelem(2) lcolor(green) lwidth(2) lpat(2)
netexports.setelem(3) lcolor(red) lwidth(2) lpat(3)
netexports.name(1) Real exports
netexports.name(2) Real output
netexports.name(3) Real imports
netexports.addtext(t,just(c),just(c)) Figure BL.C: Evolution of real exports, imports and output

graph governmentbills bgs_b_0 bgs_0 bgs_cb_0 bgs_h_0
governmentbills.options linepat
governmentbills.setelem(1) lcolor(blue) lwidth(2) lpat(1)
governmentbills.setelem(2) lcolor(green) lwidth(2) lpat(2)
governmentbills.setelem(3) lcolor(red) lwidth(2) lpat(3)
governmentbills.setelem(4) lcolor(black) lwidth(2) lpat(4)
governmentbills.name(1) Government bills supplied to banks
governmentbills.name(2) Government bills (total supply)
governmentbills.name(3) Government bills supplied to central bank
governmentbills.name(4) Government bills supplied to households
governmentbills.addtext(t,just(c),just(c)) Figure BL.D: Evolution of Government bills

graph cbbills bcbs_0
cbbills.options linepat
cbbills.setelem(1) lcolor(green) lwidth(2) lpat(2)
cbbills.name(1) Central bank bills (total supply)
cbbills.addtext(t,just(c),just(c)) Figure BL.E: Evolution of Central Bank bills

graph cbliabilityproportions cashs_0/(cashs_0+bress_0+gds_0+bcbs_0+lcbs_0) bress_0/(cashs_0+bress_0+gds_0+bcbs_0+lcbs_0) gds_0/(cashs_0+bress_0+gds_0+bcbs_0+lcbs_0) bcbs_0/(cashs_0+bress_0+gds_0+bcbs_0+lcbs_0) lcbs_0/(cashs_0+bress_0+gds_0+bcbs_0+lcbs_0)

graph cbassetproportions gir_0/(gir_0+bgh_cb_0+lcbs_0) bgh_cb_0/(gir_0+bgh_cb_0+lcbs_0) lcbs_0/(gir_0+bgh_cb_0+lcbs_0)

graph gdp c_k_0/c_k_0(-1)-1 g_k_0/g_k_0(-1)-1 i_k_0/i_k_0(-1)-1 x_k_0/x_k_0(-1)-1 m_k_0/m_k_0(-1)-1

graph surplus -(ydr_h_0-cons_0+fu_b_0+fu_f_0-i_0-d(in_0)) -psbr_0 ca_row_0
surplus.options linepat
surplus.setelem(1) lcolor(blue) lwidth(2) lpat(1)
surplus.setelem(2) lcolor(green) lwidth(2) lpat(2)
surplus.setelem(3) lcolor(red) lwidth(2) lpat(3)
surplus.name(1) Net Private Savings (reduce fiscal surplus)
surplus.name(2) Public Sector Borrowing Requirements (PSBR, fiscal surplus)
surplus.name(3) Net exports (increase fiscal surplus)
surplus.addtext(t,just(c),just(c)) Figure BL.F: Evolution of Government surplus

graph growthrates y_row_k_0/y_row_k_0(-1)-1 y_k_0/y_k_0(-1)-1

graph rowinternationaldebt fcpblgrow_0*fcblgrows_0/(py_row_0*y_row_k_0) fcbgrowh_b_0/(py_row_0*y_row_k_0) fcbgrowh_cb_0/(py_row_0*y_row_k_0) -fcpblg_0*fcblgd_row_0/(py_row_0*y_row_k_0)
rowinternationaldebt.options linepat
rowinternationaldebt.setelem(1) lcolor(blue) lwidth(2) lpat(1)
rowinternationaldebt.setelem(2) lcolor(green) lwidth(2) lpat(2)
rowinternationaldebt.setelem(3) lcolor(red) lwidth(2) lpat(3)
rowinternationaldebt.setelem(4) lcolor(black) lwidth(2) lpat(4)
rowinternationaldebt.name(1) Foreign Bonds held by residents
rowinternationaldebt.name(2) Foreign T-Bills held by domestic banks
rowinternationaldebt.name(3) Foreign T-Bills held by domestic central bank (GIR)
rowinternationaldebt.name(4) Domestic Foreign Currency Bonds held by foreigners (negative, liability to domestic economy)
rowinternationaldebt.addtext(t,just(c),just(c)) Figure BL.G: Evolution of International Investment Position as viewed by the rest of the world (ROW)

graph currentaccount ca_row_0/(y_0) ca_row_0/(py_row_0*y_row_k_0) fcbgrowh_cb_0/(py_row_0*y_row_k_0)
currentaccount.options linepat
currentaccount.setelem(1) lcolor(blue) lwidth(2) lpat(1)
currentaccount.setelem(2) lcolor(green) lwidth(2) lpat(2)
currentaccount.setelem(3) lcolor(red) lwidth(2) lpat(3)
currentaccount.name(1) Current Account to Domestic GDP ratio
currentaccount.name(2) Current Account to ROWGDP ratio
currentaccount.name(3) GIR to ROWGDP ratio
currentaccount.addtext(t,just(c),just(c)) Figure BL.H: Evolution of the Current Account as viewed by residents and the ROW

graph netsterilizationcosts xr*(fcrbgrow_0(-1)*fcbgrowh_cb_0(-1)) -rbcb_0(-1)*bcbs_0(-1) xr*(fcrbgrow_0(-1)*fcbgrowh_cb_0(-1))-rbcb_0(-1)*bcbs_0(-1)
netsterilizationcosts.options linepat
netsterilizationcosts.setelem(1) lcolor(blue) lwidth(2) lpat(1)
netsterilizationcosts.setelem(2) lcolor(green) lwidth(2) lpat(2)
netsterilizationcosts.setelem(3) lcolor(red) lwidth(2) lpat(3)
netsterilizationcosts.name(1) Income from GIR holdings
netsterilizationcosts.name(2) Sterilization cost from CB bills
netsterilizationcosts.name(3) Net sterilization costs (or Net benefits)
netsterilizationcosts.addtext(t,just(c),just(c)) Figure BL.I: Net sterilization costs (or net benefits) from the accumulation of GIR (i.e. net fiscal cost/benefit of FX rate regime)

graph shadowfxrate xr_0 xrendog_0
shadowfxrate.setelem(1) lcolor(blue) lwidth(2) lpat(1)
shadowfxrate.setelem(2) lcolor(green) lwidth(2) lpat(2)
shadowfxrate.name(1) Actual nominal foreign exchange determined by GIR accumulation (i.e. by the authorities)
shadowfxrate.name(2) Nominal shadow market-determined foreign exchange rate
shadowfxrate.addtext(t,just(c),just(c)) Figure BL.J: Shadow market-determined foreign exchange rate that would guarantee the sum of the current account and the private sector capital account is zero