Česká národní banka


CNB > Economic research > Research publications > CNB Working paper series > 2009 > Implementing the New Structural Model of the Czech National Bank

Implementing the New Structural Model of the Czech National Bank

Michal Andrle, Tibor Hlédik, Ondra Kameník and Jan Vlček

The purpose of the paper is to introduce the new “g3” structural model of the Czech National Bank and illustrate how it is used for forecasting and policy analysis. As from January 2007 the model was regularly used for shadowing official forecasts, and in July 2008 it became the core model of the CNB. In the paper we highlight the most important and unusual features of the model and discuss tools and procedures that help us in forecasting and assessing the economy with the model. The paper is not meant to provide a full derivation of the model or the complete characteristics of its behavior and should not be regarded as model documentation. Rather, the paper demonstrates how the model is used and how it contributes to policy analysis.

JEL Codes: D58, E32, E58, E47, C53

Keywords: DSGE, filtering, forecasting, general equilibrium, monetary policy

Issued: October 2009

Download: CNB WP No. 2/2009 (pdf, 701 kB)