Static vs Dynamic – should we care?

The new model allows researchers and policymakers to track the economic effects of an underlying shock to changes in the circular flow of income among the different agents in the economy. The recent development of a Static Computable General Equilibrium model for Malta, jointly between the Central Bank of Malta, the University of Malta, and the University of Macerata, has added a useful tool to the armoury of models employed by the Ministry of Finance...