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Observers and Macroeconomic Systems is concerned with the computational aspects of using a controltheoretic approach to the analysis of dynamic macroeconomic systems. The focus is on using a separate model for the development of the control policies. In particular, it uses the observerbased approach whereby the separate model learns to behave in a similar manner to the economic system through outputinjections.The book shows how this approach can be used to learn the forwardlooking behaviour of economic actors which is a distinguishing feature of dynamic macroeconomic models. It also shows how it can be used in conjunction with loworder models to undertake policy analysis with a large practical econometric model. This overcomes some of the computational problems arising from using just the large econometric models to compute optimal policy trajectories.The work also develops visual simulation software tools that can be used for policy analysis with dynamic macroeconomic systems.
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