The LINK model and its use in international scenario analysis
The main ideas and structure of the world econometric model developed by project LINK are known, but the system is always undergoing change, and this fact, together with the need for substantive analysis in the light of most recent developments prompts me to give a few general indications about the total system. Originally, the project was conceived as an attempt to model the international transmission mechanism. The initial focus was on models of major industrial market economies where short run, cyclical-like fluctuations were transmitting disturbance from one country to another. Also, a guiding principle of the project has been that every resident model builder knows his or her own country best; so the principal emphasis has been on linking together prevailing national models, to operate in an international mode, rather than on constructing look-alike systems at some research centre.
KeywordsSaudi Arabia Current Account Lower Interest Rate Baseline Solution Project Link
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