Laxton, Douglas; Berg, Andrew; Karam, Philippe D - International Monetary Fund (IMF) - 2006
This paper provides a how-to guide to model-based forecasting and monetary policy analysis. It describes a simple … structural model, along the lines of those in use in a number of central banks. This workhorse model consists of an aggregate … monetary policy reaction function. The paper discusses how to parameterize the model and use it for forecasting and policy …