A Macroeconomic Simulation Model for Uzbekistan: Technical Guide to Macroeconomic Applications

The study provide an analysis of the macroeconomic issues surrounding the reforms needed to meet the country’s growth target, as well as to identify existing policy and structural constraints and macroeconomic policy reforms measures that would help to remove those constraints. The indicative forecasts have been generating by two types of macroeconomic models. The first is a Revised Minimum Standard Model - eXtended (RMSM-X) that provides a simple spreadsheet-based tool for feasibility and sustainability analysis of the economy of Uzbekistan. The second provides is an econometric model of the macro economy for making rational and consistent predictions about Uzbekistan’s overall economic activity, the standard components of the balance of payments, the expenditure concepts of the national accounts, and the financial sector balances. The model applies a conventional framework to the economic system and, as a policy-oriented system it incorporates key parameters for policy formulation.