The new issue of the quarterly research journal Visnyk of the National Bank of Ukraine (NBU) deals with two lines of research that are important for policymaking. The first one concerns the usefulness of, and prospects for, dynamic stochastic general equilibrium (DSGE) modeling for policy analysis and forecasting. The second line highlighted by our contributors addresses the question of market signals and market efficiency.
In this issue of Visnyk of the National Bank of Ukraine, authors focus on the following topics:
The first article, Applications of DSGE Models in Central Banking: Key Issues Explored During a Research Workshop of the National Bank of Ukraine by Serhii Kiiashko, reviews an NBU research workshop on the application of DSGE models in central banking. The author summarizes the discussion on the key advantages and shortcomings of using DSGE models as a tool for policy analysis and forecasting. This article considers potential ways to resolve issues and improve the use of such models for central banks’ practical purposes.
The second article, Macroeconomic Effects of Minimum Wage Increases in an Economy with Wage Underreporting by Anastasiia Antonova, applies a DSGE model to answer a practical question that is topical for emerging markets, and for Ukraine in particular: What role does the presence and degree of underreporting play in forming the macroeconomic response to an increase in the minimum wage? The author shows that the macroeconomic effect of a minimum wage increase depends on the share of non-Ricardian households that do not have any savings and consequently consume all of their income. An economy is concluded to be less responsive to minimum wage changes if there is wage underreporting.
In the third article, Efficiency in the Market for Financial Advice to Businesses, Shaun Hargreaves-Heap and Oleksandr Talavera examine empirically whether the quality of consulting services affects businesses’ decisions to switch advisors. The outcomes show that new hires bring an improvement in advisor quality in only less than 10% of all switches.
Please note that Visnyk of the National Bank of Ukraine is indexed by IDEAS/RePEc, Index Copernicus International, and UlrichsWeb. Since September 2015, Visnyk of the National Bank of Ukraine is released for open access on the official NBU site quarterly in English with Ukrainian translation. The journal features articles that express views and ideas of the authors and do not necessarily reflect the opinion of the editorial board or an official position of the NBU.
The editorial board invites researchers, experts, financial analysts, and representatives of the banking academic community to join research efforts within the scope of the journal and to email research materials for review and publication to [email protected].
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