## GEM: A New International Macroeconomic Model

_Occasional Papers, November 30, 2004_

## Source details

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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

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### 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

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## Content in this bundle

- **GEM: 
A New International
 Macroeconomic Model -- Occasional Paper 239**
  - [GEM: 
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"}

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_Source: https://www.imf.org/en/publications/occasional-papers/issues/2016/12/31/gem-a-new-international-macroeconomic-model-17556_