chapter  5
5MODEL EXPERIMENTS
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All macro models can, as discussed in Chapter 4, be applied for two fundamentally different purposes. First, they can be used to generate economic forecasts or scenarios, and Chapters 6 and 7 will show how the FP and RMSM frameworks can usefully be applied for this purpose. This chapter will, on the other hand, illustrate the second type of application, where the two models are put into use in a number of model experiments. The aim of this exercise is to reveal the marginal properties of the two frameworks, which can then be compared both with each other and with results from the general economic literature.