IMF paper develops model of world economy
A working paper, published by the International Monetary Fund in June, develops a structural macroeconomic model of the world economy, disaggregated into 35 countries.
The paper, prepared by Francis Vitek, develops the model based on Bayesian conditioning, using this to demonstrate monetary and fiscal transmission mechanisms, spillover effects between countries, and forecasts of inflation and output growth.
Disaggregated macroeconomic models such as this are "prerequisite to the effective
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