Central Bank of Malta revamps main structural model
Model captures the interlinked nature of the fiscal and financial sectors
The Central Bank of Malta published the latest version of its main structural model in February, focusing on a more detailed financial sector and incorporating new data.
In a working paper, Owen Grech and Noel Rapa, both senior research economists at the central bank, set out version three of the 'Stream' model. Built of five 'blocks', it is somewhat unusual among structural models, as it is designed to capture the interaction of the fiscal and financial sectors. The model contains 232 equations
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