Evaluating Policy Counterfactuals: A VAR-Plus Approach
Alisdair McKay, Federal Reserve Bank of Minneapolis
In a rich family of linearized structural macroeconomic models, the counterfactual evolution of the macro-economy under alternative policy rules is pinned down by just two objects: first, reduced-form projections with respect to a large information set; and second, the dynamic causal effects of policy shocks. In particular, no assumptions about the structural shocks affecting the economy are needed. We propose to recover these two sufficient statistics using a “VAR-Plus” approach, and apply it to evaluate several monetary policy counterfactuals.
| Building: | Lorch Hall |
|---|---|
| Website: | |
| Event Type: | Workshop / Seminar |
| Tags: | Economics, Macroeconomics, seminar |
| Source: | Happening @ Michigan from Department of Economics, Michael Beauregard Seminar in Macroeconomics, Department of Economics Seminars |
