investigating the impact of national currency value shocks on the inflation structure and unemployment of the new keynesian model using a dynamically computable general equilibrium approach

The primary impact of shocks is to instigate uncertainty in economic variables. these unforeseeable fluctuations exert influence on all economic decisions made by both the government and the private sector. additionally, the formation of people's expectations further contributes to the dynamic effects of these shocks on economic variables. inflation is characterized by a general, disproportionate, and often irreversible surge in prices. this study aims to investigate the dynamics of inflation and unemployment within the framework of the new keynesian model, utilizing a dynamic general equilibrium approach. furthermore, the study employs dynamic computable general equilibrium (cge) models to examine long-term relationships that pertain to the decision-making processes of economic entities such as households and investors. the data was analyzed utilizing the proposed practical models. the findings reveal that a currency shock leads to an overall increase in inflation across the country. notably, the more substantial the currency shock, the more pronounced the subsequent inflationary surge. however, it is important to note that a currency shock temporarily reduces unemployment.