Journal Article

Policy rules in macroeconomic forecasting models


Abstract: This Commentary describes how some of the Cleveland Fed?s macroeconomic forecasting models have been modified to use a Taylor rule for monetary policy. After briefly describing the Taylor rule implementation, the article shows that the Taylor rule included in one of our models successfully captures the course of monetary policy in the most recent episode of policy tightening.

Keywords: Forecasting; Macroeconomics; Taylor's rule; Monetary policy;

Access Documents

File(s): File format is text/html https://doi.org/10.26509/frbc-ec-201216
Description: Full Text

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2012

Issue: Oct

Order Number: 16