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How can central banks prepare for economic shocks when interest rates hit zero? In this conversation, economist Douglas Laxton (former IMF) and Martin Weale (King’s College London and ex-MPC member at the Bank of England) join Joeri Schasfoort to introduce FPAS Mark III, the next evolution in the Forecasting and Policy Analysis System (FPAS). Learn how Mark III builds on the earlier frameworks by introducing exchange rate intervention strategies—especially for small open economies facing the effective lower bound. 💡 What’s covered: 🔁 The transition from FPAS Mark I and II to Mark III 📉 Lessons from the Czech National Bank's exchange rate floor 🧩 Managing uncertainty with scenario-based forward guidance 💬 How Mark III can address inflation credibility and communication challenges 🌐 Potential applications for economies like the UK and Japan This is a must-watch for central bankers, economists, and students of monetary policy interested in how frameworks evolve in response to today’s volatile global landscape. Subscribe to our channel for more podcasts, expert insights, and policy breakdowns. Contact us to learn more: https://www.thebetterpolicyproject.org Or send us an email: asyakostanyan@thebetterpolicyproject.org Check out The Better Policy Project's website for more on macro modeling and central banking: https://www.thebetterpolicyproject.org/ Follow us on Twitter: https://x.com/PolicyBetter Follow us on Linkedin: / the-beter-policy-project