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Introducing ECB-BASE: The blueprint of the new ECB semi-structural model for the euro area

ECB 2019.11.11
This paper presents the blueprint of a new ECB multi-country model. The version documented
in the following pages is estimated on euro area data. As a prelude to the country models, this version is meant to enhance the understanding of the main model mechanisms, enlarge the suite of area wide tools, and provide a tool for a top down approach between euro area and country modelling. The model converges to a well-defined steady state and its properties are in line with macroeconomic theory and standard empirical benchmarks. The design is aligned to its role as workhorse model in the context of the forecasting and policy simulation exercises at the ECB.

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