Forecasting and Policy Analysis System
This paper presents forecasting and policy analysis system (FPAS) for Georgia. The successful implementation of monetary policy in the context of inflation targeting regime requires detailed analysis of the current economic climate and a comprehensive forecast for the economy. This process requires a synthesis of analytical tools and expert judgment. For this purpose, the National Bank of Georgia (NBG), working in collaboration with leading international institutions, developed the forecasting and policy analysis system (FPAS) for Georgia. The NBG’s FPAS incorporates a number of analytical instruments that can be classified into three categories: short-term forecasting tools; a medium-term forecasting tool (the Georgian Economy Model); and additional satellite models. A detailed description of these models are presented in this document.