Skip to main content

6.4 Democratising the Macroeconomic Modelling Toolbox

This proposal aims to contest the values and trade-offs embedded in policy analysis and ensure that decisions about wellbeing, care, and ecological balance are informed by societal priorities rather than hidden assumptions about growth.

(Policy profile forthcoming)

This proposal seeks to contest the values and trade-offs embedded in policy analysis and ensure that decisions about wellbeing, care, and ecological balance are informed by societal priorities rather than hidden assumptions about growth. In many institutions today, major policy choices are still assessed mainly through conventional macroeconomic frameworks, especially DSGE (Dynamic Stochastic General Equilibrium) and CGE (Computable General Equilibrium) models, which although useful in specific contexts, have several limitations. These approaches rest on assumptions that are not readily accessible to non-specialists, give limited weight to distributional outcomes and ecological constraints, and thus narrow the range of policies considered feasible. The Roadmap therefore proposes a new institutional architecture for model-based governance. First, it calls for strengthened transparency infrastructure, including public model inventories, standardised “Model Cards” documenting assumptions and limitations, scenario registries, and systematic sensitivity analysis. Second, it promotes methodological pluralism for high-stakes decisions, encouraging institutions to compare results across different modelling approaches rather than relying on a single framework. Third, it introduces concise policy dashboards that prioritise outcomes directly aligned with the Roadmap’s objectives—such as poverty reduction, inequality, access to essential goods and services, labour conditions, and ecological pressures—alongside, rather than secondary to, aggregate economic indicators. What this changes is the range of policies that can be assessed credibly: governments would be better able to examine redistribution, sufficiency, care, and ecological transition packages on their social and environmental merits, rather than judging them primarily through GDP-centred criteria. This matters in both high-income countries and low- and middle-income countries, where broader and more locally grounded modelling can also reduce dependence on imported templates that do not fully reflect domestic structural conditions and development priorities. As a concrete illustration of operational feasibility, this proposal points to frameworks such as EUROGREEN, which can be used to model an integrated policy mix aligned with the Roadmap and show how poverty eradication beyond growth can be analysed in practical terms.