Issues in designing an Australian macroeconomic model

ACDE Trade & Development Seminars


Chris Murphy, Crawford School of Public Policy, ANU


Other, please see description for details


Tuesday, 5 March, 2019 - 14:00 to 15:30

This paper discusses the issues in designing an Australian macroeconomic model to be used for both policy analysis and forecasting. Serving these dual functions requires a reasonable level of consistency with both macroeconomic theory (emphasised in New Keynesian DSGE models) and macroeconomic data (emphasised in VAR models). Balancing theory and data leads to an eclectic approach based on a macro-econometric model.

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