A RMSM-X model for Turkey

Abstract

To improve the Bank's macroeconomic modeling capabilities, a continuum of macro models referred to as RMSM-X and RMSM-XX are being developed. These models share a common accounting framework that ensures economic consistency among economic sectors. This paper shows how to specify the budget constraints and market clearing conditions in a RMSM-X model for Turkey. An overview of the system defined by the RMSM-X model, the debt module (DM) and the data base is presented, along with a detailed explanation of the theoretical model. Alternative closure rules are discussed and the debt model is presented. This paper also includes annexes which present a complete set of historical data and an explanation of how the data was constructed.Economic Theory&Research,Environmental Economics&Policies,Banks&Banking Reform,Economic Stabilization,Financial Intermediation