## Solving the Canonical Quarterly Projection Model Using EViews

_Technical Notes and Manuals, April 6, 2026_

## Source details

**Canonical URL:** [Solving the Canonical Quarterly Projection Model Using EViews](https://www.imf.org/en/publications/tnm/issues/2026/04/06/solving-the-canonical-quarterly-projection-model-using-eviews-573519)

## Other formats

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## Bibliographic details
- Authors: Sam Ouliaris, Celine Rochon
- Published: April 6, 2026
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9798229035439.005

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### Overview and Purpose
- The Quarterly Projection Model (QPM) is one of the IMF’s standard frameworks for monetary policy analysis and forms a core component of a forward‑looking Forecasting and Policy Analysis System (FPAS).
- The technical note demonstrates how the canonical QPM can be implemented using the EViews econometric package, as an alternative to the traditional MATLAB simulation tools.
- Aim: reduce technical barriers to applying the model in practice and enable policy analysts and economists to adapt the QPM to country‑specific settings without requiring advanced proficiency in EViews programming.

### Target Audience
- Policy analysts and economists who wish to adapt the QPM to country‑specific settings.
- Users with basic EViews familiarity who need to assemble data and make targeted modifications to existing EViews code.

### Key Methodological Points
- The approach is illustrated using a notional “Country Z,” and the methodology is designed to be readily adapted to real‑world country applications.
- Required user actions include:
  - assembling the required data,
  - selecting the appropriate exchange‑rate regime equations,
  - calibrating key model constants,
  - making targeted modifications to existing EViews code.
- The note covers solving the QPM for its baseline projection and constructing and analyzing alternative scenarios.

### Scenario Analysis Capabilities
- The technical note shows how to construct and analyze alternative scenarios that may involve:
  - multiple exogenous shocks,
  - constraints on selected endogenous variables.
- Scenarios enable assessment of:
  - the dynamic response of the economy,
  - the speed and path of its return to the baseline.

### Practical Implementation Benefits
- Implements canonical QPM using EViews to lower the technical entry threshold compared with MATLAB.
- Enables country teams to adapt the canonical model with limited EViews programming changes.
- Facilitates forward‑looking monetary policy analysis within FPAS using a widely available econometric package.

### Subject Areas and Keywords
- Subject: Consumer price indexes, Exchange rates, Foreign exchange, Inflation, Output gap, Prices, Production, Real exchange rates
- Keywords: Consumer price indexes, EViews QPM package, Exchange rates, forecasting, Inflation, monetary policy analysis, Output gap, Qpm baseline, quarterly projection model, real exchange rates, time series analysis

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## Content in this bundle

- **Solving the Canonical Quarterly Projection Model Using EViews; March 2026; TNM/2026/03**
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_Source: https://www.imf.org/en/publications/tnm/issues/2026/04/06/solving-the-canonical-quarterly-projection-model-using-eviews-573519_