Author Description

Over The Past Two Years, The Imf Staff Has Been Developing A New Multicountry Macroeconomic Model Called The Global Economy Model (gem). This Paper Explains Why Such A Model Is Needed, How Gem Differs From Its Predecessor Model, And How The New Features Of The Model Can Improve The Imf’s Policy Analysis. The Paper Is Aimed At A General Audience And Avoids Technical Detail. It Outlines The Motivation, Structure, Strengths, And Limitations Of The Model; Examines Three Simulation Exercises That Have Been Completed; And Discusses The Future Path Of Gem. Overview -- Philosophy And Approach. Why A New Model? Structure Of Gem. Strengths And Weaknesses Of Gem -- How Has Gem Been Used? Measuring The Benefits Of Raising Euro Area Labor And Product Market Competition. Should Monetary Policy Rules Differ Between Industrial Countries And Emerging Market Countries? The Impact Of Higher Oil Prices -- Current Development Work. Fiscal Policy. International Asset Markets -- The Road Ahead. Tamim Bayoumi, Hamid Faruqee, Douglas Laxton, Philippe Karam, Alessandro Rebucci, Jaewoo Lee, Benjamin Hunt, Ivan Tchakarov.