Inside the ECB’s upgraded multi-country model

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Annabel Jeffery

The European Central Bank is in the process of overhauling a key element of its modelling toolkit. In September, the central bank published a ‘blueprint’ for a new multi-country modelling approach.

ECB-Base lays the foundation for a new semi-structural model of the eurozone. The model will replace the new multi-country model (NMCM), which has been the ECB’s multi-country workhorse since 2011, part of a diverse stable of modelling approaches.

One of the key goals of the ECB-Base project was to

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