POLICYMETRICS: Econometrics for Macroeconomic Policy Making

Course Overview

Real-world policy decisions often result from analyzing different models and making judgment calls. This practical approach has benefits in terms of robustness, but a major downside is that it can be difficult to identify the most appropriate course of policy. Questions arise, such as how to accurately calibrate the magnitude and timing of a fiscal package or how to strike the right balance between inflation and unemployment through monetary policy.

In this course, participants will learn how modern econometric methods, in particular methods for impulse response estimation and forecasting, can be used as building blocks to evaluate and improve practical macroeconomic policy decisions. The methodology allows participants to combine insights from multiple economic models, qualitative evidence, and judgment to reach optimal policy decisions in complex and data rich macroeconomic environments.

The course is designed for monetary and fiscal policy makers, their staff members, and researchers and PhD students interested in the econometrics of policy making.