GEM: A New International Macroeconomic Model

Occasional Papers, November 30, 2004

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GEM: A New International Macroeconomic Model

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Bibliographic details

• Authors: Tamim Bayoumi, Hamid Faruqee, Douglas Laxton, Philippe D Karam, Alessandro Rebucci, Jaewoo Lee, Benjamin L Hunt, Ivan Tchakarov
• Published: November 30, 2004
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781589063754.084

Overview

• Over the past two years, the IMF staff has been developing a new multicountry macroeconomic model called the Global Economy Model (GEM).
• The 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.

Motivation and purpose

• Provide a multicountry macroeconomic modeling framework to improve IMF policy analysis.
• Address limitations of the predecessor model by introducing new features that enhance realism and policy relevance.
• Target a general audience to communicate model design and applications without technical detail.

Structure and key features

• A multicountry macroeconomic model named Global Economy Model (GEM).
• Emphasizes features that distinguish it from the predecessor model (specific differences described in the paper).
• Designed to support policy analysis through simulation exercises and scenario evaluation.

Simulation exercises

• The paper examines three simulation exercises that have been completed (details of each simulation are presented in the paper).

Strengths and limitations

• Outlines the strengths of GEM in improving policy analysis relative to the predecessor.
• Discusses limitations of the model and directions for future refinement and development.

Subjects and keywords

• Subject: Consumption, Emerging and frontier financial markets, Financial markets, Inflation, Labor, National accounts, Oil prices, Prices
• Keywords: Consumption, Emerging and frontier financial markets, GEM, GEM refinement, GEM simulation, Global, Inflation, macroeconomics literature, market, oil price hike, Oil prices, OP, open economy, policy model

Content in this bundle

• **GEM:

A New International Macroeconomic Model -- Occasional Paper 239**

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A New International Macroeconomic Model -- Occasional Paper 239 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/op/239/_op239.pdf.md){rel="alternate" type="text/markdown"}

• [GEM:

A New International Macroeconomic Model -- Occasional Paper 239 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/op/239/_op239.pdf){rel="external" type="application/pdf"}