The paper presents the first version of Latvia's Macroeconomic Model (LMM) built using the features and structure of an Area-Wide Model (AWM) for the euro area and Multi-Country Model (MCM) for a typical country block of the European System of Central Banks. This is one of the first attempts to create an econometric model that captures the Latvian economy as a whole and simultaneously modells the supply and demand sides, price and fiscal blocks, and the external sector.
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Paper provided by Latvijas Banka in its series Working Papers with number
2006/02.
Find related papers by JEL classification: C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables C5 - Mathematical and Quantitative Methods - - Econometric Modeling E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation
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