A Defence of the FOMC

JEL codes: 
C53, E52, E58
Version Date: 
Sep 2009

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 these

Report file: 
PDF icon Download the paper (1003 KB)