ABSTRACT
A series of expost, historical simulations are performed on the model to trace the impact of changes in individual policy variables. A discussion of the policy implications of the simulations first for single policies and then for combinations of policies follows. Monetary policy simulations include experiments with changing the rate of change in the monetary base, the conventional loan rate, the official exchange rate, the rate of growth of credit, and with shifting the share of credit from industry to commerce. In addition to the simulations where the values of individual policy variables are changed, combinations of assumed changes for the policy variables were simulated. The policies chosen for the combinations are those that had the greatest positive results in the single policy simulations. The combination of best monetary and fiscal policies shows significant improvement over either the combination of fiscal policies or monetary policies alone.
