Stock flow consistent models have the potential to act as an alternative modeling tool to Dynamic Stochastic General Equilibrium models. However, no model helped predict or understand why Ireland’s economy has collapsed so spectacularly since 2007 because the real and financial sides of the economy were not modeled using this current tool. The models produced by this project will help inform policy debates on just where the Irish economy may be going in the near future as well as other small open economies which in an era of globalization face the same challenges as Ireland.
Estimation of Stock Flow Consistent Models
This research project develops, estimates, calibrates, and deploys a new class of stock flow consistent macroeconomic models to try to understand Ireland’s macroeconomic collapse since 2007.