Although inflation has fallen recently, it remains above target, and the economy continues to expand at a robust pace. Does this resilience imply that monetary policy has been ineffectual? Or does it mean that we haven’t yet observed the full effect of the monetary tightening that has already taken place? This post uses a Bayesian vector autoregressive model to study the behavior of the U.S. economy over the last few years.| Liberty Street Economics
A look at how well central banks and market participants understand each other’s expectations, featuring a model with a dynamic game.| Liberty Street Economics
A look at how the Federal Reserve can keep its supply of ample reserves by estimating the slope of the reserve demand curve.| Liberty Street Economics
The authors report on new research showing that once a DW facility is stigmatized, removing that stigma is difficult.| Liberty Street Economics