MAKRO is a large, empirically based macroeconomic model of the Danish economy, the purpose of which is to serve as a tool for medium and long-term projections, short and long run policy impact assessment, and long run fiscal policy sustainability measurement. At a later stage, the model should be able to incorporate short-term economic forecasts into its projections. The model's description of the structural development in the economy is an integrated part of the description of adjustments to shocks in the economy.
The purpose of this paper is to provide an overview of the beta version of the model, as well as to describe and explain the background for the key modeling choices made in the various areas of the model. In this way, the paper aims to provide an overall, relatively easily accessible and non-technical introduction to MAKRO. A detailed technical description of the modeling of all agents and markets can be found in the technical documentation. The empirical strategy behind the model, the model's conformity with the empirical data and properties of central shocks are described separately in separate notes. Together, these notes form the core of the documentation, supplemented by working papers on various topics.