This paper estimates the gains from adding credit spreads to the FOMC’s policy rule using both a monetary VAR and a calibrated DSGE model. Our estimates suggest that this change can reduce the variance of consumption and employment gaps by about 1/3. This improvement reflects closer tracking of the natural rate of interest.
- Speaker
- Date
- Monday 16 Dec 2024, 11:30 - 12:30
- Type
- Seminar
- Room
- 2-09
- Building
- Polak Building
About the speaker
Jeff Campbell is a native of Trenton, Michigan. He received his bachelor's degree from the University of Michigan and his doctoral degree from Northwestern University, both in Economics. Before coming to Notre Dame, he served as Senior Economist and Research Advisor at the Federal Reserve Bank of Chicago. His research covers macroeconomics, industrial organization, and econometrics. Much of Cambell's research applies dynamic game theory to create tractable econometric models of strategic interactions between "large players," such as central banks and dominant firms in concentrated industries.
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