A defence of the FOMC

We defend the forecasting performance of the FOMC from the recent criticism of Christina and David Romer. Our argument is that the FOMC forecasts a worst-case scenario that it uses to design decisions that will work well enough (are robust) despite possible misspecification of its model. Because t...

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Bibliographic Details
Main Authors: Ellison, M, Sargent, T
Format: Working paper
Published: University of Oxford 2009