The Flexible System of Global Models – FSGM

IMF Working Papers, March 20, 2015

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The Flexible System of Global Models – FSGM

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Bibliographic details

• Authors: Michal Andrle, Patrick Blagrave, Pedro Espaillat, Keiko Honjo, Benjamin L Hunt, Mika Kortelainen, René Lalonde, Douglas Laxton, Eleonara Mavroeidi, Dirk V Muir, Susanna Mursula, Stephen Snudden
• Published: March 20, 2015
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781475518665.001

Overview and Purpose

• The Flexible System of Global Models (FSGM) is a group of models developed by the Economic Modeling Division of the IMF for policy analysis.
• A typical module of FSGM is a multi-region, forward-looking semi-structural global model consisting of 24 regions.
• The paper uses three core modules focused on the G-20, the euro area, and emerging market economies to:
  • Outline the theory under-pinning the model.
  • Illustrate its macroeconomic properties by presenting its responses under a wide range of experiments.

Model Structure and Scope

• Model type: multi-region, forward-looking semi-structural global model.
• Regional coverage: 24 regions.
• Core modules highlighted: G-20, the euro area, emerging market economies.
• Experiment types used to illustrate properties:
  • Monetary shocks
  • Financial shocks
  • Demand shocks
  • Supply shocks
  • Fiscal shocks
  • International shocks

Key Subjects and Themes

• Primary subjects listed: Consumption, Exports, Imports, Inflation, International trade, National accounts, Oil prices, Prices.
• Keywords and technical terms preserved exactly as given:
  • adjustment cost parameter
  • Consumption
  • cost of capital
  • dynamic stochastic general equilibrium models
  • Exports
  • fiscal policy
  • Global
  • Imports
  • Inflation
  • interest rate
  • macroeconomic interdependence
  • market clearing price
  • monetary policy
  • nominal interest rate
  • Oil prices
  • Phillips curve
  • price deflator
  • WP

Summary Findings and Analytical Use

• The paper presents the theoretical foundations of the FSGM and demonstrates how the model responds to a wide range of standard macroeconomic experiments.
• The FSGM is positioned as a tool for policy analysis across monetary, fiscal, financial, demand, supply, and international dimensions, using multi-region interactions captured across 24 regions.

IMF Working Paper: "The Flexible System of Global Models – FSGM", Working Paper No. 2015/064, March 20, 2015

Content in this bundle

• _wp1564 - Appendix I. Composition of the Modules of Fsgm
  • _wp1564 - Appendix I. Composition of the Modules of Fsgm (Markdown version)
  • _wp1564 - Appendix I. Composition of the Modules of Fsgm (PDF)