ABSTRACT
Econometric research and model-building at the Nederlandsche Bank (the Dutch central bank) started in the early 1970s, initiated by the Board’s explicit desire to have a separate econometric research unit to foster the conduct of up-to-date scientific research based on modern econometric techniques within the Bank. One of the tasks assigned to the research unit was to build a macroeconomic model for the Netherlands’ economy to be used in support of the policy-making process. This model had to serve two purposes: providing forecasts for a short-to medium-term horizon, and providing a coherent framework for the analysis of policy and external shocks. The unit began its research activities on 1 January 1971 and gradually developed into the Econometric Research and Special Studies Department.
