Estimates of Potential Output and the Neutral Rate for the U.S. Economy
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Summary:
Estimates of potential output and the neutral short-term interest rate play important roles in policy making. However, such estimates are associated with significant uncertainty and subject to significant revisions. This paper extends the structural multivariate filter methodology by adding a monetary policy block, which allows estimating the neutral rate of interest for the U.S. economy. The addition of the monetary policy block further improves the reliability of the structural multivariate filter.
Series:
Working Paper No. 2018/152
Subject:
Capacity utilization Inflation Inflation targeting Monetary policy Output gap Potential output Prices Production Real interest rates
English
Publication Date:
July 6, 2018
ISBN/ISSN:
9781484366325/1018-5941
Stock No:
WPIEA2018152
Pages:
31
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