Monetary Policy Models

摘要

Monetary policy institutions in which policymakers and modelers regularly interact, using probability and decision-theoretic language, seem for the time being to be spreading. I have explained that there are reasons to think this way of doing policy really is better, and therefore might persist and spread further. This is not inevitable, however, for several reasons: Economics faculties could lose interest and stop producing people who are well trained in inference and data analysis as well as in economics.