A version of dynamic stochastic general equilibrium model for open economy

The paper presents a dynamical stochastic model of general equilibrium for key indicators of Russian economy. A special feature of the approach is the Keynesian microeconomic foundation, which takes into account market failures such as imperfect competition, inflexible prices and wages. The second specific feature is the hypothesis of rational expectations.
The model is a system of 17 equations describing the dynamics of key macroeconomic indicators such as GDP, inflation and interest rates, exchange rate, export, import, consumption relative to its equilibrium trajectories.
The model is intended to assess the nature of the reaction of key economic indicators to fluctuations in exogenous factors. Using the constructed model, the effects on key macroeconomic indicators from demand shocks, total factor productivity, and changes in the world interest rate are estimated. The results of modeling and calculations can be used by monetary authorities in the development of monetary policy.