Macrofinancial Analysis in the World Economy : A Panel Dynamic Stochastic General Equilibrium Approach

This paper develops a structural macroeconometric model of the world economy,disaggregated into forty national economies. This panel dynamic stochastic generalequilibrium model features a range of nominal and real rigidities, extensivemacrofinancial linkages, and diverse spillover transmission channels. A variety ofmonetary policy analysis, fiscal policy analysis, macroprudential policy analysis, spilloveranalysis, and forecasting applications of the estimated model are demonstrated. Theseinclude quantifying the monetary, fiscal and macroprudential transmission mechanisms,accounting for business cycle fluctuations, and generating relatively accurate forecasts ofinflation and output growth