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Introducing ECB-BASE: The blueprint of the new ECB semi-structural model for the euro area

Author

Listed:
  • Angelini, Elena
  • Bokan, Nikola
  • Christoffel, Kai
  • Ciccarelli, Matteo
  • Zimic, Srečko

Abstract

This paper presents the blueprint of a new ECB multi-country model. The version documentedin the following pages is estimated on euro area data. As a prelude to the countrymodels, this version is meant to enhance the understanding of the main model mechanisms,enlarge the suite of area wide tools, and provide a tool for a top down approach betweeneuro area and country modelling. The model converges to a well-de ned steady state and itsproperties are in line with macroeconomic theory and standard empirical benchmarks. Thedesign is aligned to its role as workhorse model in the context of the forecasting and policysimulation exercises at the ECB. JEL Classification: C3, C5, E1, E2, E5

Suggested Citation

  • Angelini, Elena & Bokan, Nikola & Christoffel, Kai & Ciccarelli, Matteo & Zimic, Srečko, 2019. "Introducing ECB-BASE: The blueprint of the new ECB semi-structural model for the euro area," Working Paper Series 2315, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20192315
    Note: 338657
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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecb.wp2315~73e5b1c3cd.en.pdf
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    More about this item

    Keywords

    euro area; forecasting; monetary policy; Semi-structural model; simulations;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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