## The Flexible System of Global Models – FSGM

_IMF Working Papers, March 20, 2015_

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**Canonical URL:** [The Flexible System of Global Models – FSGM](https://www.imf.org/en/publications/wp/issues/2016/12/31/the-flexible-system-of-global-models-fsgm-42796)

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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

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### 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*

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## Content in this bundle

- **_wp1564 - Appendix I. Composition of the Modules of Fsgm**
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  - [_wp1564 - Appendix I. Composition of the Modules of Fsgm (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp1564.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-flexible-system-of-global-models-fsgm-42796_