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Comparative Properties of Models of the Uk Economy∗

Published online by Cambridge University Press:  26 March 2020

K.B. Church ,
P.R. Mitchell ,
D.S. Turner ,
K.F. Wallis  and
J.D. Whitley
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Abstract

This article describes the current versions of six leading macroeconometric models, focusing on their treatment of several current policy issues, namely the role of the housing market, the implications of ERM membership and, more generally, the relative effectiveness of fiscal and monetary policy. Differences in the modelling of the housing sector and the exchange rate are important in explaining differences in overall model properties which are revealed in standard policy simulations. Monetary policy is more potent than in previous versions of the models, which has important implications for the conduct of macroeconomic policy under ERM membership.

Type
Articles
Information
National Institute Economic Review , Volume 137 , August 1991 , pp. 59 - 74
Copyright
Copyright © 1991 National Institute of Economic and Social Research

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Footnotes

∗

This is the fourth in an annual series of surveys published in the National Institute Economic Review by the ESRC Macroeconomic Modelling Bureau at the University of Warwick. A PC-program (Macdonald and Turner, 1991) which presents many of the results described in this paper in convenient ready-reckoner form is available from the Bureau. Editorial responsibility is taken by the authors, not by the Editorial Board of the Review.

References

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