A Guide to Frb/Global
Board of Governors of the Federal Reserve System IFDS Working Paper No. 588
69 Pages Posted: 5 Jan 1998
Date Written: September 1997
This paper describes the structure and illustrates the key features of FRB/Global, a large-scale macroeconomic model used in analyzing exogenous shocks and alternative policy responses in foreign economies and in examining the impact of these external shocks on the U.S. economy. FRB/Global imposes fiscal and national solvency constraints and utilizes error-correction mechanisms in the behavioral equations to ensure the long-run stability of the model. In FRB/Global, expectations play an important role in determining financial market variables and domestic expenditures. Simulations can be performed using either limited-information ("adaptive") or model-consistent ("rational") expectations.
JEL Classification: F47, E17, E50
Suggested Citation: Suggested Citation