In April 1999, the Bank of England published
Economic models at the Bank of England, a book that described the economic
modelling tools that help the Monetary Policy Committee (MPC) in its
It was made clear at the time that economic models should not be
thought of as fixed in form or content, and that model development is a
continual process (*).
The purpose of the present publication is to provide
an update of model developments over the past 18 months, particularly
in relation to the Bank's main macroeconometric modelling tool.
In addition to the physical publication, the underlying computer
code of the macroeconometric model is also available.
The Bank's use of economic models remains
pluralist and open. This September 2000 update, while giving details of the
core macroeconometric model, also makes reference to other work within the Bank
that has added to the range of models used by the MPC.
(*)On 22 April 2004, the
Bank issued an article entitled:
The New Bank of England Quarterly Model describing a new macroeconomic
model used to help prepare the Monetary Policy Committee's Quarterly
The detailed technical specification of the model will be published
later this year in a further update of 'Economic Models at the
Bank of England'.