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Bank of Canada Review
Summer 2002
Index of Working Papers | Index of Technical Reports| Title | Models in Policy-Making |
| Author(s) | Don Coletti and Stephen Murchison |
| Type | Bank of Canada Review article |
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Date of publication |
Summer 2002 |
| Language | English |
| Abstract | This article examines another strategy in the Bank's approach to dealing with an uncertain world: the use of carefully articulated models to produce economic forecasts and to examine the implications of the various risks to those forecasts. Economic models are deliberate simplifications of a complex world that allow economists to make predictions that are reasonably accurate and that can be easily understood and communicated. By using several models, based on competing paradigms, the Bank minimizes policy errors that could result from relying on one view of the world and one philosophy of model design. The authors review some of the models currently used at the Bank, as well as the role of judgment in the projection process. |
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Bank topic index |
Economic models |
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JEL classification |
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