Branching paths: the Czech National Bank’s many modelling options
Three external reviews each recommended a different combination of models. The CNB now faces tough design choices, and must also decide how to upgrade its economic research
In November, the Czech National Bank published the results of an external review of its modelling framework – the first in its history. More precisely, the central bank published three external reviews and one additional benchmarking report, as well as a report detailing the current modelling framework. Between them, the documents offer countless paths that the CNB could take as it works to fix the flaws in its economic modelling.
Each review made somewhat different recommendations on the route
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