## Monetary and Fiscal Policy Analysis with DSGE Models (DSGE)

## Source details

**Canonical URL:** [Monetary and Fiscal Policy Analysis with DSGE Models (DSGE)](https://www.imf.org/en/capacity-development/training/icdtc/courses/dsge)

## Other formats

- [Markdown version](/en/capacity-development/training/icdtc/courses/dsge/index.md)
- [Structured JSON version](/en/capacity-development/training/icdtc/courses/dsge/index.json)
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## Bibliographic details
- Published: July 31, 2024

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### Overview
- Course presented by the Institute for Capacity Development.
- Focus: building, using, and interpreting Dynamic Stochastic General Equilibrium (DSGE) models to analyze monetary and fiscal policy.
- Emphasis on model design and implementation issues, region-specific case studies, and discussion of benefits and limitations of DSGE models for policy analysis and advice.
- Topic: General Macroeconomics.

### Target audience
- Mid-level to senior officials who use Dynamic Stochastic General Equilibrium (DSGE) models in the macroeconomic analysis of monetary and fiscal policy issues.

### Qualifications
- Expected: an advanced degree in economics or equivalent experience.
- Required skills: solid quantitative skills and a basic knowledge of MATLAB/Octave and Dynare/Iris (specific knowledge of these is not required).
- Recommended: completion of the online Monetary Policy Analysis and Forecasting (MPAFx) course.

### Course objectives
- Describe the models and techniques (simulation and estimation) that policy makers use in analyzing monetary, fiscal, and structural issues.
- Augment or modify the model structure to address an economic policy question.
- Apply the DSGE models developed in the course to various policy questions and interpret their results.
- Identify the advantages and limitations of the models when used for policy analysis and advice.
- Construct a basic DSGE model from first principles using data specific to the participant’s own country in the region.

### Syllabus and structure
- Duration: two-week course.
- Focus: use and interpretation of dynamic stochastic general equilibrium (DSGE) models.
- Emphasis on applications of fiscal and monetary policies using models with nominal and real rigidities commonly used in central banks and ministries of finance.
- Method: reliance on region-relevant case studies to illustrate application and to show how DSGE models can serve as inputs into the policymaking process.
- The course dedicates numerous lectures to model design and implementation issues.

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_Source: https://www.imf.org/en/capacity-development/training/icdtc/courses/dsge_