New Investment Study Results Reported from Federal Reserve Board (Us Monetary Policy and Indeterminacy): Investment

2025 FEB 12 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Current study results on Investment have been published. According to news reporting originating from Washington, District of Columbia, by NewsRx editors, the research stated, “In this paper, I investigate the stance of the US monetary policy in the postwar period. To this end, I show that two features are key: a rich structural model and a parameterization of the indeterminate solution that ensures a sufficient exploration of the indeterminacy region during the estimation procedure.”

Our news editors obtained a quote from the research from Federal Reserve Board, “Therefore, I estimate a medium-scale model on the US macroeconomic data using a novel solution method to allow for indeterminacy. The evidence of a passive monetary policy in the pre-1979 period is pervasive and robust to the use of alternative model specifications and data.”

According to the news editors, the research concluded: “By contrast, the evidence of an active stance after 1979 is overturned if the period of the Volcker disinflation is excluded or if the model is estimated including a time-varying inflation target and data on inflation expectations.”

This research has been peer-reviewed.

For more information on this research see: Us Monetary Policy and Indeterminacy. Journal of Applied Econometrics, 2025. Journal of Applied Econometrics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Applied Econometrics - http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1255)

The news editors report that additional information may be obtained by contacting Giovanni Nicolo, Federal Reserve Board, 20TH St & Constitut Ave NW, Washington, DC 20551, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1002/jae.3107. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.