Macroeconomic

Macroeconomic models

Macroeconomic teaching, research, and informed debates normally evolve around formal (diagrammatic or equational) macroeconomic models to clarify assumptions and show their consequences precisely. Models include simple theoretical models, often containing only a few equations, used in teaching and research to highlight key basic principles, and larger applied quantitative models used by e.g. governments, central banks, think tanks and international organisations to predict effects of changes in economic policy or other exogenous factors or as a basis for making economic forecasting.