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GOVERNMENT SECTOR

RTRPUOS: RTRPUOS=POL12_EQ*ERGDP,

RTRPUPR: RTRPUPR=(1-POL1)*RWA*TRBASE,

TRBASE: TRBASE=POL8_EQ*POP4+POL9_EQ*UNB

+POL11_EQ*(POP1+POP2+POP3+POP4),

UNB: UNB=(1+DIFD)*NTS-(NT),

RGSPEND: RGSPEND=RWA*NGG+RPYD*(GGCO+GGIF)

+RTRPUPR+RTRPUOS+RYPUPR-RYOSPU,

RPUBS: RPUBS=-(RGSPEND-RPYD*GGIF)+(POL1*RWA*(NT)

+POL4_EQ*CONO*RPYD +POL5_EQ*PIMF/RER*IM

+POL6_EQ*RWA*(NT-NGG)+POL7_EQ*CONH*RPYD+POL3_EQ*ERGDP),

PUBDER: PUBDER-PUBDER(-1)=RPYD*GGIF(-1)-RPUBS(-1),

RZGA: RZGA=DGDRATIO_EQ*PUBDER,

ZG: ZG=FGDRATIO_EQ*RER*PUBDER,

RB: RB=PUBDER-(RZGA+ZG/RER),

RYPUPR: RYPUPR =(RL(-1)/400)*RB+RATB_EQ*ERGDP,

FORWARD LOOKING FISCAL RULE

POL1:POL1=POL1(-1)+C8001*(PUBDER(8)/ERGDP(8)-PUBDE_EQ(8))

+C8002*((PUBDER(9)/ERGDP(9)-RPUBDE_EQ(9))-(PUBDER(8)/ERGDP(8)-RPUBDE_EQ(8)))

+C8003*(RPUBDE_EQ-RPUBDE_EQ(-1)),

MONETARY SECTOR

PNA10: PNA10=TEXP+IIE+YD-IM,

LGAP: LGAP=LOG(PNA10/PO_EQ),

INF_TAR = 0.8*INF_TAR(-1)+0.2*INF_TAR_eq,

INF_PYD:(INF_PYD-INF_TAR)=C1204*(C1205*(INFE(-1)-INF_TAR)

+(1-C1205)*(INF_PYD(-1)-INF_TAR))+

(1-C1204)*(C1206*LGAP(-1)+C1207*LGAP(-2)+

C1208*LGAP(-3)+C1209*LOG(RPYDMR(-1))),

INF_WA: (1+INF_WA)=EXP(INFE(-1))*(C0301*A1(-3)/A1(-4)+C0302*A1(-4)/A1(-5)

+C0303*A1(-5)/A1(-6)+C0304*A1(-6)/A1(-7))-C0305*(URT(-2)-NAIRU)+

C0306*LOG(ERWA(-2)/RWA(-2))+C0307*LOG(RPYDMR(-1))+Z_W

RCS: RCS=(C5001*(INF_CPIX(5)-CPI_TAR)+C5002*(INF_CPIX(6)-

CPI_TAR)+C5003*(INF_CPIX(7)-CPI_TAR)-C5004*(RCS-RCS(-1))+RL)+Z_RCS,

RWA: RWA=RWA(-1)*(1+INF_WA)/EXP(INF_PYD),

INF: INF= ((1-(SHARE/(1+SHARE)))*(INF_PYD)

+(SHARE/(1+SHARE))*(INF_PCONH)) +Z_INF,

INFE: (1+INFE)=0.05*(1+INF)+0.95*(1+INFE(1)),

CPIX: CPIX=CPIX(-1)*EXP(INF),

INF_CPIX: INF_CPIX=LOG(CPIX/CPIX(-4)),

INF_PCONH: EXP(INF_PCONH)=RPCONH/RPCONH(-1)*EXP(INF_PYD),

PYD: PYD=PYD(-1)*EXP(INF_PYD),

INTEREST RATES AND EXCHANGE RATES

E: RE=E*PYD,

ETWIT: ETWIT=E*EXP(C4800+C4801*TREND),

RI: RI = ((1+RL/400)/EXP(INFE)-1),

RIF: RIF=((1+RLFB/400)/EXP(INFW)-1),

RS: RS=(1+RCS/400)/EXP(INF)-1,

RSF: RSF=(1+(RCSFB+RPRCS)/400)/EXP(INFW)-1,

RL: RL= ((1-.95)*RCS+.95*RL(1)),

YCURVE: YCURVE= RCS-RL,

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