Centre for Macroeconomic Policy

MPC assists in advising and planning fiscal and structural policies by preparing medium-term plans and structural economic assessments. Through this work, MPC provides the government with a solid foundation for pursuing a sound economic policy. MPC applies a range of economic models and impact assessment methods, which help to ensure credibility in the fiscal planning. The work of the centre is diverse and closely connected to the political decision-making process.

MPC’s responsibilities span a wide range of micro- and macroeconomic topics, utilizing various models and methods, including detailed register data (Lovmodellen) and macroeconomic models. Micro-based analyses include, for example, studies of changes in retirement, taxation, and education, focusing on labour supply and distributional effects. Macro-based analyses encompass calculations and estimates of the structural budget balance, output gap, fiscal impulse measures, as well as fiscal space in the short term and long-term fiscal sustainability.

Furthermore, MPC is responsible for continuously reviewing and further developing core principles and methods for policy assessments, strengthening the theoretical and empirical foundation for projections and impact assessments. MPC contributes to the development of a new macroeconomic model, MAKRO, which will be used for projections of the Danish economy and for evaluating the effects of economic policy measures and various shocks to the economy.