Formal models of the economy are important for central banks. They help ensure a consistent view of the transmission mechanism of monetary policy and facilitate the identification of shocks that affect the economy. They also form a coherent framework for forecasting and provide a benchmark to...

This is an intensive week-long event, which comprises of lectures and practical sessions. The lectures will cover: • the dynamic stochastic general equilibrium (DSGE) paradigm; • calibration to determine model parameters; • solution and control methods for linear rational expectations...