Workshop Summary

In November 2016, the Bank organized a workshop on “Central Bank Models: The Next Generation” to stimulate the Bank’s thinking towards developing the next generation of policy models. In this workshop, Bank staff discussed three important subjects with academics and practitioners: (i) new directions for model development, (ii) desired features of the modeling toolbox, and (iii) the role of models in the policy process. In this note, the Organizing Committee summarizes the main conclusions for each of these subjects.

Session 1: Central Banks: Current Experiences and Views on the Next Generation of Policy Models

Chair: Timothy Lane (Bank of Canada)

Jeffrey Campbell (Federal Reserve Bank of Chicago)
Paul Hiebert (International Monetary Fund)
Rhys Mendes (Bank of Canada)

Session 2: Central Banker’s Modeling Toolbox: One-for-All or All-for-One?

Chair: Stephen Murchison (Bank of Canada)

Itay Goldstein (Wharton School, University of Pennsylvania)
James Nason (North Carolina State University)
Rafael Wouters (National Bank of Belgium)

Keynote presentation

Chair: Césaire Meh (Bank of Canada)

Central Bank Models: Lessons from the Past and Ideas for the Future

John Taylor (Stanford University)

Session 3: Challenges to the Business Cycle Paradigm in Central Bank Models

Chair: Sharon Kozicki (Bank of Canada)

Craig Burnside (Duke University)
Andrew Levin (Dartmouth College)
Victor Ríos-Rull (University of Pennsylvania)

Session 4: How Should We Revolutionize Central Bank Models?

Chair: Jing Yang (Bank of Canada)

Peter Howitt (Brown University)
Xavier Gabaix (Harvard University)

Remarks

by Governor Stephen S. Poloz

Organizing committee: José Dorich, Oleksiy Kryvtsov, Virginie Traclet, Jonathan Witmer