The Role of Models and Probabilities in the Monetary Policy Process

@article{Sims2002TheRO,
  title={The Role of Models and Probabilities in the Monetary Policy Process},
  author={C. Sims},
  journal={Brookings Papers on Economic Activity},
  year={2002},
  volume={2002},
  pages={1 - 62}
}
  • C. Sims
  • Published 2002
  • Economics
  • Brookings Papers on Economic Activity
  • THis IS A PAPER ON THE way data relate to decisionmaking in central banks. One component of the paper is based on a series of interviews with staff members and a few policy committee members of four central banks: the Swedish Riksbank, the European Central Bank (ECB), the Bank of England, and the U.S. Federal Reserve. These interviews focused on the policy process and sought to determine how forecasts were made, how uncertainty was characterized and handled, and what role formal economic models… CONTINUE READING
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