Christiano-Eichenbaum-Evans (CEE) Model

The Christiano-Eichenbaum-Evans (CEE) Model is a macroeconomic framework used to analyze how economic policies, like changes in interest rates or government spending, affect the economy's output, inflation, and employment over time. It incorporates realistic features such as temporary shocks and delayed effects, helping policymakers understand the dynamic responses of financial markets and the economy. Essentially, it serves as a sophisticated tool for predicting and evaluating the potential consequences of different economic strategies, aiding decision-makers in designing policies that promote stability and growth.