The Flexible System of Global Models – FSGM

Abstract

The Flexible System of Global Models (FSGM) is a group of models developed by the Economic Modeling Division of the IMF for policy analysis. A typical module of FSGM is a multi-region, forward-looking semi-structural global model consisting of 24 regions. Using the three core modules focused on the G-20, the euro area, and emerging market economies, this paper outlines the theory underpinning the model, and illustrates its macroeconomic properties by presenting its responses under a wide range of experiments, including monetary, financial, demand, supply, fiscal and international shocks.

ECB-Global: Introducing the ECB's global macroeconomic model for spillover analysis

“…The magnitude of the spillovers implied by ECB-Global is well in line with the findings in the literature (see, for example, Cesa-Bianchi et al, 2011;Ahuja and Myrvoda, 2012;Duval et al, 2014;Feldkircher and Korhonen, 2014;IMF, 2014a,b;Andrle et al, 2015;Dizioli et al, 2016a).…”

“…ECB-Global is similar in spirit to other semi-structural models, such as the IMF's Global Projection Model (GPM7; Blagrave et al, 2013), the IMF's Flexible System of Global Models (FSGM; Andrle et al, 2015) and the global DSGE model developed by Cova et al (2015). ECBGlobal has several features that set it apart.…”

“…In the first step, we set an initial value for the structural parameters by drawing on the literature, both on other semi-structural models such as the Andrle et al (2015) and Carabenciov et al (2013) Gomes et al (2012) andDe Graeve (2008). The first step allows us to specify the value of the structural parameters in a way similar to that of other estimated models, but it does not necessarily imply empirically plausible dynamics in ECB-Global.…”

International remittances, migration and primary commodities

“…The theoretical foundations and dynamic properties of the model apart from the migration and remittance mechanism are extensively described in Andrle et al. (). For the sake of brevity, this paper provides a technical overview of the novel remittances and migration channels and a non‐technical overview of the other aspects of the model.…”

Propagation of changes in demand through international trade: A case study of China

“…The complexities of these models limit the number of countries or regions for which they can be estimated. Andrle et al (2015) provides a Flexible System of Global Models (FSGM), a group of multi-region, forward-looking semi-structural global models consisting of 24 regions. Some key elements, such as private consumption and investment, are modeled based on micro-foundations, while others elements, such as trade, labor supply, and inflation, have reduced-form representations.…”