Macroeconomic models are among the tools used to analyse the Norwegian economy and monetary policy. NEMO is a new macroeconomic model that has been developed by Norges Bank. It plays a key role in designing the interest rate path. In addition to looking at how the model is constructed and quantified and how it works, we focus on why the model was chosen and the properties required. Finally, we provide examples of how the model may be used.

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