Practical Use of Macroeconomic Models at Central Banks

Naoko Hara, Hibiki Ichiue (), Satoko Kojima, Koji Nakamura and Toyoichiro Shirota
Additional contact information
Satoko Kojima: Bank of Japan
Koji Nakamura: Bank of Japan

No 09-E-1, Bank of Japan Review Series from Bank of Japan

Abstract: Macroeconomic models are effective tools for central banks in economic projection, including risk assessment. In recent years, a multiple-model approach called the "Suite of Models" has become popular with central banks. This approach advocates the use of multiple models for several purposes, including checks of the robustness of projections. This idea has encouraged major central banks to use different types of models. These include hybrid-type models, which pursue short-run empirical coherence and long-run theoretical consistency, and Dynamic Stochastic General Equilibrium (DSGE) models, which place greater emphasis on theory. At the Bank of Japan, a new hybrid-type model named Q-JEM (Quarterly-Japanese Economic Model) has been recently added to the Bank's suite of models. A suite of models is useful for forecasting and for policy analysis. The use of models, however, requires sufficient understanding on the properties and limitations of each model.

Date: 2009-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.boj.or.jp/en/research/wps_rev/rev_2009/data/rev09e01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boj:bojrev:09-e-1

Access Statistics for this paper

More papers in Bank of Japan Review Series from Bank of Japan Contact information at EDIRC.
Bibliographic data for series maintained by Bank of Japan ().