Solving the Canonical Quarterly Projection Model Using EViews

The Quarterly Projection Model (QPM) is one of the IMF’s standard frameworks for monetary policy analysis and forms a core component of a forward‑looking Forecasting and Policy Analysis System (FPAS). Traditionally, the QPM is solved using simulation tools available in MATLAB. This technical note demonstrates how the canonical QPM can instead be implemented using the EViews econometric package, with the aim of reducing the technical barriers to applying the model in practice. The note is intended for policy analysts and economists who wish to adapt the QPM to country‑specific settings without requiring advanced proficiency in the EViews programming language. The approach is illustrated using a notional “Country Z,” but the methodology can be readily adapted to real‑world country applications. Users need only to assemble the required data and make targeted modifications to existing EViews code, such as selecting the appropriate exchange‑rate regime equations and calibrating key model constants. In addition to solving the QPM for its baseline projection, the technical note shows how to construct and analyze alternative scenarios. These scenarios may involve multiple exogenous shocks and constraints on selected endogenous variables, enabling users to assess the dynamic response of the economy and the speed and path of its return to the baseline.

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Publication Details

Journal
Technical Notes and Manuals
Published
2026-04-01
DOI
https://doi.org/10.5089/9798229035439.005
Primary Topic
Monetary Policy and Economic Impact
Type
article
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article

Solving the Canonical Quarterly Projection Model Using EViews

Sam Ouliaris
Technical Notes and Manuals
Monetary Policy and Economic Impact
article

Solving the Canonical Quarterly Projection Model Using EViews

Sam Ouliaris
article en

Abstract

The Quarterly Projection Model (QPM) is one of the IMF’s standard frameworks for monetary policy analysis and forms a core component of a forward‑looking Forecasting and Policy Analysis System (FPAS). Traditionally, the QPM is solved using simulation tools available in MATLAB. This technical note demonstrates how the canonical QPM can instead be implemented using the EViews econometric package, with the aim of reducing the technical barriers to applying the model in practice. The note is intended for policy analysts and economists who wish to adapt the QPM to country‑specific settings without requiring advanced proficiency in the EViews programming language. The approach is illustrated using a notional “Country Z,” but the methodology can be readily adapted to real‑world country applications. Users need only to assemble the required data and make targeted modifications to existing EViews code, such as selecting the appropriate exchange‑rate regime equations and calibrating key model constants. In addition to solving the QPM for its baseline projection, the technical note shows how to construct and analyze alternative scenarios. These scenarios may involve multiple exogenous shocks and constraints on selected endogenous variables, enabling users to assess the dynamic response of the economy and the speed and path of its return to the baseline.

Technical Notes and ManualsVol. 2026(003)
Openalex Percentile: Top 31%
Monetary Policy and Economic Impact
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