Intro -- Contents -- I. INTRODUCTION -- II. MONETARY POLICY ANALYSIS AT THE IMF -- III. MACROECONOMIC MODELING -- IV. BUILDING THE MODEL -- V. FORECASTING AND POLICY ANALYSIS46 -- VI. AN EXAMPLE -- VII. CAVEATS AND FUTURE WORK -- VIII. CONCLUSIONS -- REFERENCES.

Many central banks in emerging and advanced economies have adopted an inflation-forecast targeting (IFT) approach to monetary policy, in order to successfully establish a stable, low-inflation environment. To support policy making, each has developed a structured system of forecasting and policy...

The Central Bank of Morocco has been working on developing a Forecasting and Policy Analysis System (FPAS) to support a gradual move toward a more flexible exchange rate regime and the eventual adoption of a full-fledged inflation-targeting (IT) regime. At the center of the FPAS is a quarterly...