QMM – A Quarterly Macroeconomic Model of the Icelandic Economy. Version 2.0

• Format: Report
• Language: English
• Published: Central Bank of Iceland 2009
• Subjects: Iceland
• Online Access: https://pure.au.dk/portal/da/publications/qmm--a-quarterly-macroeconomic-model-of-the-icelandic-economy-version-20(19e0dbf1-9254-47f7-8262-fb9ffeec48b5).html; http://sedlabanki.is/lisalib/getfile.aspx?itemid=6802

This paper documents and describes Version 2.0 of the Quarterly Macroeconomic Model of the Central Bank of Iceland (QMM). QMM and the underlying quarterly database have been under construction since 2001 at the Research and Forecasting Division of the Economics Department at the Bank and was first implemented in the forecasting round for the Monetary Bulletin 2006/1 in March 2006. QMM is used by the Bank for forecasting and various policy simulations and therefore plays a key role as an organisational framework for viewing the medium-term future when formulating monetary policy at the Bank. This paper is mainly focused on the short and medium-term properties of QMM Steady state properties of the model are documented in a paper by Daníelsson (2009).