About this course
Introduces the theory and practice of DSGE models used by central banks for monetary policy analysis and forecasting. Content covers household and firm optimisation, New Keynesian price setting, monetary policy rules, log-linearisation, solution methods, calibration, Bayesian estimation and impulse response analysis. Delegates build and estimate a small open economy model in Dynare.
Why this course
Many central banks now use DSGE models within their forecasting and policy analysis systems, but in-house capacity to maintain and adapt them is often thin. Staff who can build, estimate and interpret these models reduce dependence on external consultants and can explain policy scenarios with greater consistency.
What delegates will be able to do
By the end of the course, delegates will be able to
- Derive the equilibrium conditions of a basic New Keynesian model
- Log-linearise a model and write it in Dynare code
- Calibrate and estimate model parameters using Bayesian methods
- Generate and interpret impulse responses to monetary, fiscal and external shocks
- Adapt a small open economy model to features of their own economy
Who should attend
Economists and modellers in central banks, ministries of finance and research institutes. Delegates need graduate-level macroeconomics, some mathematical optimisation and prior experience with MATLAB, Octave or similar software.
How it is delivered
Alternating theory sessions and computer laboratory work in Dynare with MATLAB or Octave, with delegates building and estimating models step by step. It is available as a public course, in-house at your premises, or as live virtual sessions. Duration and dates are confirmed in your quote, and in-house groups can have the examples and exercises fitted to their organisation.