In this paper we discuss the main model properties of NiGEM, the National Institute's large-scale macroeconometric model. NiGEM is a ‘New-Keynesian’ model where agents display forward-looking behaviour but there are nominal rigidities slowing adjustment. In a number of policy simulations we find there are strong similarities across countries. Nevertheless, Euro Area responses to monetary and fiscal policy are greatest in Germany in NiGEM, whilst these responses are slower in comparison to the US due to greater wage-price inertia.
|Number of pages||55|
|Early online date||5 Feb 2004|
|Publication status||Published - Sep 2004|
|Event||EMU Macroeconomic Model Comparison excercise for the Euroconference - Bonn, Germany|
Duration: 7 Jun 2002 → 8 Jun 2002