Template-Type: ReDIF-Paper 1.0
Author-Name: Matthias Burgert
Author-X-Name-First: Matthias
Author-X-Name-Last: Burgert
Author-Name: Giulio Cornelli
Author-X-Name-First: Giulio
Author-X-Name-Last: Cornelli
Author-Name: Burcu Erik
Author-X-Name-First: Burcu
Author-X-Name-Last: Erik
Author-Name: Benoit Mojon
Author-X-Name-First: Benoit
Author-X-Name-Last: Mojon
Author-Name: Daniel Rees
Author-X-Name-First: Daniel
Author-X-Name-Last: Rees
Author-Name: Matthias Rottner
Author-X-Name-First: Matthias
Author-X-Name-Last: Rottner
Title: The BIS multisector model: a multi-country environment for macroeconomic analysis
Abstract: This paper introduces the BIS Multisector Model (BIS-MS), a dynamic stochastic general equilibrium (DSGE) model for analyzing macroeconomic dynamics in a multi-sector production network. The model can be calibrated to match the input-output data of more than 80 economies, enabling a detailed exploration of sectoral interdependencies and cross-industry shock transmission. By incorporating nominal rigidities at the sectoral level, the model can also be used to evaluate alternative monetary policy strategies. The paper demonstrates the model's capabilities by analyzing temporary and permanent energy price shocks under different monetary policy frameworks. In doing so, it illustrates the critical role of the country-specific production networks in shaping macroeconomic outcomes. The accompanying model toolbox equips policymakers and researchers with an easy-to-access platform for flexible scenario analysis.
Creation-Date: 2025-10
File-URL: https://www.bis.org/publ/work1297.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1297.htm
File-Format: text/html
Number: 1297
Keywords: multisector model, DSGE model, monetary policy, production network, climate change
Classification-JEL: C54, E52, H23, Q43
Handle: RePEc:bis:biswps:1297