Occasional Papers

GEM: A New International Macroeconomic Model

Author/Editor:

Tamim Bayoumi ; Hamid Faruqee ; Douglas Laxton ; Philippe D Karam ; Alessandro Rebucci ; Jaewoo Lee ; Benjamin L Hunt ; Ivan Tchakarov

Publication Date:

November 30, 2004

Electronic Access:

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Summary:

Over the past two years, the IMF staff has been developing a new multicountry macroeconomic model called the Global Economy Model (GEM). This paper explains why such a model is needed, how GEM differs from its predecessor model, and how the new features of the model can improve the IMF’s policy analysis. The paper is aimed at a general audience and avoids technical detail. It outlines the motivation, structure, strengths, and limitations of the model; examines three simulation exercises that have been completed; and discusses the future path of GEM.

Series:

Occasional Paper No. 2004/010

Subject:

Consumption Emerging and frontier financial markets Financial markets Inflation Labor National accounts Oil prices Prices