1
Checklist for preparation the model of inflationary loop 1) Prepare io table
- check if j j j
i
ij W S X
x + + =
∑
2) Prepare parameters: aij0, b , 0ik w0j, s0j - check if a w0j s0j 1
i 0
ij+ + =
∑
- check if b 1
i 0 ik=
∑
3) Prepare the model; note: set recalculation method to „manual”, iterations=1, Press F9 to recalculate formulas in spreadsheet
a) vector of exogenous shocks on prices b) vector of unit surplus s0j
c) vector of wage equations fd1 0 j
j w p
w = (first set pfdj =1in 3f) d) matrix of material costs i
0 ijp
a (first set pj= in 3e); use indeks function to get prices 1 from 3e
e) vector of producer prices p a pi wj s0j j 1
i 0 ij
j=
∑
+ + +∆ =f) vector of final demand prices i i
0 ik fd
j b p
p =
∑
; use indeks function to get prices from 3e 4) Prepare presentation of the model results- one screen
- two graphs - producer prices and final demand prices with names of sectors and
categories of final demand); note: present growth rates and not not idicies of prices; in the case of the sector with ∆j≠0subtract also ∆ j
- parameters: sector number and value of ∆ (present also the name of the chosen sector) - switches for loops
