4  For background information on this model, see Christopher Erceg, Luca Guerrieri, and Christopher Gust (2006), “SIGMA: A New Open Economy Model for Policy Analysis (PDF),” International Finance Discussion Paper Series 2005–835 (Washington: Board of Governors of the Federal Reserve System, January).
This model incorporates monetary policy responses to economic shocks and thus may show smaller effects on real GDP and inflation than other partial-equilibrium analyses. That said, the SIGMA model is just one of a number of models that the Board staff regularly consults to inform their analysis of the U.S. economy. 2  BIS central bankers’ speeches  elsewhere.