{
  "title": "FINEX - A New Workhorse Model for Macroeconomic Forecasting and Policy Analysis",
  "publication": "IMF Working Papers, November 10, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2023/11/10/finex-a-new-workhorse-model-for-macroeconomic-forecasting-and-policy-analysis-541416",
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  "summary": "This paper presents a semi-structural macroeconomic model aimed at facilitating policy analysis and forecasting, primarily in countries with imperfect capital mobility and hybrid monetary policy regimes.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Presents a semi-structural macroeconomic model designed for policy analysis and forecasting in countries with imperfect capital mobility and hybrid monetary policy regimes.\n- Emphasizes the model's ability to interpret recent data in terms of structural shocks and policy responses to help policymakers construct coherent economic narratives and consider alternative scenarios.\n- The paper refrains from drawing broad policy lessons, focusing instead on model construction and applications."
    },
    {
      "heading": "Key innovations of FINEX",
      "content": "- FINEX (Forecasting Model of Internal and External Balance) contains three main innovations compared to earlier gap-trend projection models:\n  - Accentuates external and internal balances.\n  - Explicitly incorporates fiscal policy.\n  - Partly endogenizes the main trends."
    },
    {
      "heading": "Policy instruments and coverage",
      "content": "- FINEX covers a broad set of policy instruments, including:\n  - Foreign exchange interventions (FXI).\n  - Capital flow management measures (CFM).\n  - Common fiscal policy instruments."
    },
    {
      "heading": "Model features and methodology",
      "content": "- Semi-structural gap-trend structure that remains accessible for practical policy applications.\n- Incorporates insights from the recent DSGE literature while preserving a gap-trend framework.\n- Aims to facilitate both forecasting and policy analysis under imperfect capital mobility and hybrid monetary regimes."
    },
    {
      "heading": "Applications, scope, and limitations",
      "content": "- Intended primarily for countries with imperfect capital mobility and hybrid monetary policy regimes.\n- Useful for interpreting data through the lens of structural shocks and policy responses and for constructing alternative scenarios.\n- The paper does not provide broad policy prescriptions; it emphasizes the model's interpretative and scenario-analysis capabilities.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2023/11/10/finex-a-new-workhorse-model-for-macroeconomic-forecasting-and-policy-analysis-541416"
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    "Authors: Andrew Berg, Yaroslav Hul, Philippe D Karam, Adam Remo, Diego Rodriguez Guzman",
    "Published: November 10, 2023",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400259395.001",
    "Presents a semi-structural macroeconomic model designed for policy analysis and forecasting in countries with imperfect capital mobility and hybrid monetary policy regimes.",
    "Emphasizes the model's ability to interpret recent data in terms of structural shocks and policy responses to help policymakers construct coherent economic narratives and consider alternative scenarios.",
    "The paper refrains from drawing broad policy lessons, focusing instead on model construction and applications.",
    "FINEX (Forecasting Model of Internal and External Balance) contains three main innovations compared to earlier gap-trend projection models:",
    "FINEX covers a broad set of policy instruments, including:",
    "Semi-structural gap-trend structure that remains accessible for practical policy applications.",
    "Incorporates insights from the recent DSGE literature while preserving a gap-trend framework.",
    "Aims to facilitate both forecasting and policy analysis under imperfect capital mobility and hybrid monetary regimes.",
    "Intended primarily for countries with imperfect capital mobility and hybrid monetary policy regimes.",
    "Useful for interpreting data through the lens of structural shocks and policy responses and for constructing alternative scenarios.",
    "The paper does not provide broad policy prescriptions; it emphasizes the model's interpretative and scenario-analysis capabilities.",
    "**Working Paper**"
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