An analysis of the IMF's Global Economic Policy Models Over the Last Thirty Years

Abstract

Economic theory and economic policy are intimately intertwined. Depending on the theoretical framework used to analyze a specific reality, the resulting economic policies can be very different, even diametrically opposed. This paper seeks to analyze the theory underpinning the economic policy recommendations of the International Monetary Fund (IMF) by examining the primary models of the world economy developed by the organization over the last thirty years: the Multi-region Econometric Model (MULTIMOD), the Global Economy Model (GEM), and the Global Integrated Monetary and Fiscal Model (GIMF).