A Stress Test for Models – The Macroeconomic Model Data Base 2.0

What are the consequences of a cut in interest rates? How effectively can the economy be boosted applying certain measures? These questions can be answered more precisely on the basis of the new version 2.0 of the “Macroeconomic Model Data Base” (MMB).

In the version MMB 2.0 of this public archive Volker Wieland and his team now have included 61 macroeconomic models. For the first time, the MMB comprises models developed in the aftermath of the financial crisis that contain a detailed modeling of the financial sector.

There are more than 4500 registered users worldwide for the platform, which is accessible via internet under www.macromodelbase.com. In the open archive users can analyze in various models at the same time the consequences of a cut or a rise in interest rates, a tax reform or a stimulus package. Models of the Federal Reserve, the European Central Bank, the European Commission, the International Monetary Fund as well as the central banks of Sweden, Canada and Chile are already integrated on the platform. The tool clarifies the strengths and weaknesses of different models. Also the results of other studies can be checked. Basically, with the help of the MMB researchers can develop recommendations which show positive effects across different models.

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