Central Banks around the world are engaged in developing a suite of modern macroeconomic/ econometric models of the economy as a basis for informed macroeconomic, monetary, financial sector and fiscal policy decisions. It is now of critical importance, particularly, in light of the current challenges facing the economy.
The importance of modeling macroeconomic variables has become all the more critical because macroeconomic policy formulation needs to anchor its functional role in developing a full understanding of the economy as well as influencing domestic policy formulation in a logical framework.