Category Archives: Federal Reserve

Does the Fed Care about What’s Going On in the Rest of the World?

Ferrara and De Roux actually pose the question more tactfully, in their paper (Capturing international influences in U.S. monetary policy through a NLP approach)  presented at the ISF meetings here in Charlottesville. They look to see if in the FOMC minutes, international economic issues are mentioned in a way that, when converted to an index, shows up as statistically significant in a Taylor equation, and provide the answer “yes”.

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