Estimates of Potential Output and the Neutral Rate for the U.S. Economy

• Author(s): Ali Alichi, Rania A. Al-Mashat, Hayk Avetisyan, Mr.Jaromir Benes, Olivier Bizimana, Aram Butavyan, Mr.Robert Ford, Narek Ghazaryan, Vahagn Grigoryan, Mane Harutyunyan, Anahit Hovhannisyan, Edgar Hovhannisyan, Hayk Karapetyan, Mariam Kharaishvili, Mr.Douglas Laxton, Akaki Liqokeli, Karolina Matikyan, Gevorg Minasyan, Shalva Mkhatrishvili, Armen Nurbekyan,
• Publisher: International Monetary Fund
• Pages: 31
• ISBN_10: 1484366328
  ISBN_13: 9781484366325
  
• Language: en
• Categories: Business & Economics / Production & Operations Management , Business & Economics / Inflation , Business & Economics / Money & Monetary Policy ,

Description:... Estimates of potential output and the neutral short-term interest rate play important roles in policy making. However, such estimates are associated with significant uncertainty and subject to significant revisions. This paper extends the structural multivariate filter methodology by adding a monetary policy block, which allows estimating the neutral rate of interest for the U.S. economy. The addition of the monetary policy block further improves the reliability of the structural multivariate filter.