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The researchers of Latvijas Banka are working toward the following goals:

  1. At the euro area level: to contribute to the analysis of the euro area's monetary policy together with other Eurosystem banks
  2. At Latvia's level: to contribute to current discussions on Latvia's economic issues, particularly regarding competitiveness
  3. To do this by using the most state of the art methods of economic science

At euro zone level

The formulation of monetary policy decisions of the ECB's Governing Council technically involves joint support efforts by the committees.

Many important joint projects of the Eurosystem and the ECB serving as the basis for the decisions of the Governing Council of the ECB have been implemented over the past years.

The most important ones also involving the researchers of Latvijas Banka have been carried out by the following groups:

  • a group of experts analysing causes of low Inflation;
  • a working group on structural policy;
  • a working group on the natural interest rate estimates, etc.

Their contribution is usually reflected in ECB publications. In 2018 alone, seven ECB Working Paper Series and ECB Occasional Paper Series were co-authored with the researchers of Latvijas Banka reflecting the results of their previous activities. 

At Latvia's level

Latvijas Banka has a range of the most advanced economic modelling instruments in Latvia:

  • data-driven models: short-term forecasting models (factor models, BVAR models), larger structural models (BVAR, SVAR) and input-output table based macroeconomic model (CGE);
  • economic theory based models: Latvian DSGE model, euro area DSGE model.

Models are also often used in public discussions and discussions with other public institutions.

The results of research are not intended for internal use, but are published for public discussion either within the working papers series in scientific language or in a more synoptic manner – on the economic analysis website Macroeconomics.lv and in the Macroeconomic Developments Report of Latvijas Banka.