Third of key models now employ endogenous financial sector
Multiple channels of monetary transmission rooted in majority models
The proportion of central banks incorporating an endogenous financial sector feedback mechanism in their key forecasting frameworks increased over the past two years, the Economics Benchmarks 2026 find.
This year, one-third (33.3%) of 30 economics departments reported use of the endogenous approach, compared with just 20.6% in the 2024 benchmark.
Economists often combine key forecast models with additional models for a more complete picture. The International Monetary Fund advises central banks
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