Model-Based Globally-Consistent Risk Assessment /

This paper outlines an approach to assess uncertainty around a forecast baseline as well as the impact of alternative policy rules on macro variability. The approach allows for non-Gaussian shock distributions and non-linear underlying macroeconomic models. Consequently, the resulting distributions...

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Detalhes bibliográficos
Autor principal: Andrle, Michal
Outros Autores: Hunt, Benjamin
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2020.
Colecção:IMF Working Papers; Working Paper ; No. 2020/064
Assuntos:
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper outlines an approach to assess uncertainty around a forecast baseline as well as the impact of alternative policy rules on macro variability. The approach allows for non-Gaussian shock distributions and non-linear underlying macroeconomic models. Consequently, the resulting distributions for macroeconomic variables can exhibit skewness and fat tails. Several applications are presented that illustrate the practical implementation of the technique including confidence bands around a baseline forecast, the probabilities of global growth falling below a specified threshold, and the impact of alternative fiscal policy reactions functions on macro variability.
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Descrição Física:1 online resource (28 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students