Working Paper

A guide to FRB/Global


Abstract: This paper describes the structure and illustrates the key features of FRB/Global, a large-scale macroeconomic model used in analyzing exogenous shocks and alternative policy responses in foreign economies and in examining the impact of these external shocks on the U.S. economy. FRB/Global imposes fiscal and national solvency constraints and utilizes error-correction mechanisms in the behavioral equations to ensure the long-run stability of the model. In FRB/Global, expectations play an important role in determining financial market variables and domestic expenditures. Simulations can be performed using either limited-information (\"adaptive\") or model-consistent (\"rational\") expectations.

Keywords: European Monetary System (Organization); Econometric models; Macroeconomics;

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File(s): File format is application/pdf http://www.federalreserve.gov/pubs/ifdp/1997/588/ifdp588.pdf

Authors

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: International Finance Discussion Papers

Publication Date: 1997

Number: 588