MULTIMOD Mark II: A Revised and Extended Model

This paper presents an overview of the MULTI-region econometric MODel (MULTIMOD) Mark II Model. The model disaggregates the larger industrial bloc into its component countries, and, as a result, comprises eight industrial countries/regions and two developing country regions. The major changes in structure relative to the earlier model relate to the modeling of consumption, investment, and trade flows, and the treatment of monetary policy. By including separate models for several of the European economies, it is possible to take account of the exchange rate mechanism of the European Monetary System.