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Abstract: 
This paper describes the structure and illustrates the key features of
FRB/Global, a large-scale macroeconomic model used in analyzing exogenous
shocks and alternative policy responses in foreign economies and in examining
the impact of these external shocks on the U.S. economy. FRB/Global imposes
fiscal and national solvency constraints and utilizes error-correction
mechanisms in the behavioral equations to ensure the long-run stability of the
model. In FRB/Global, expectations play an important role in determining
financial market variables and domestic expenditures. Simulations can be
performed using either limited-information ("adaptive") or model-consistent
("rational") expectations.
Full paper (248 KB PDF)
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