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IMF FPP2x Model Videos
This macro model was originally designed for the FPP2x online course.
However, we can use basically the same model to show macroeconomic outcomes and vulnerabilites in other contexts.
These videos, taken from the FPP2x course, provide a detailed explanation of the model.
This iis the introductory video.
Review: Phillips Curve, Monetary Policy, and Interest Parity Condition.
Introducing The IS Curve:
Equilibrium in the Market for Goods and Services.
Building the IS Curve --Element by Element:
Domestic Expenditures
Building the IS Curve --Element by Element:
Net Exports
The Relative Prices of Exports and Imports. Link to The Real Interest Rate
Putting It All Together to Obtain the IS Curve.
Adding In Monetary Policy: The Central Bank Interest Rate (Taylor) Rule.
The Real Inerest Rate:
Nominal Interest Rate Minus Inflation Rate.
Macroeconomic Equilibrium for the Core Variables: Output, The Interest Rate, and the Inflation Rate.
Macroeconomic Equilibrium: Extending to Net Exports and the Real Exchange Rate.
Putting the Model To Work:
A Neutral Scenario.
Putting the Model To Work:
A Fiscal Expansion,
No Monetary Accomodation
Putting the Model To Work:
A Fiscal Expansion with
Monetary Accomodation
Putting the Model To Work:
A Monetary Expansion
Risks and Vulnerabilities:
A Managable Situation?
Risks and Vulnerabilities:
Adverse External
Financial Pressures II
Risks and Vulnerabilities:
A Fal In Export Prices/
Terms of Trade
Risks and Vulnerabilities:
Wrapping Up
Putting the Model To Work:
Back To Macronia
(specific for FPP2x course)
Risks and Vulnerabilities:
Adverse External
Financial Pressures I
Wrapping Up:
What did we learn from the model?
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