Estimates of Potential Output and the Neutral Rate for the U.S. Economy PDF Download

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Estimates of Potential Output and the Neutral Rate for the U.S. Economy

Estimates of Potential Output and the Neutral Rate for the U.S. Economy PDF Author: Ali Alichi
Publisher: International Monetary Fund
ISBN: 1484367766
Category : Business & Economics
Languages : en
Pages : 31

Book Description
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.
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