A New Procedure for Generating the Stochastic Simulations in Frb/Us
Posted: 12 Mar 2019 Last revised: 16 Sep 2020
Date Written: March, 2019
Abstract
This note summarizes a new procedure for generating stochastic simulations in FRB/US, a large-scale estimated general equilibrium macroeconomic model of the U.S. economy, which has been in use at the Federal Reserve Board since 1996. In the first part of this note, we contrast some features of the original stochastic simulations procedure with those of the data. In the second part, we offer an alternative to the original procedure that fits the data better along core dimensions of interest.
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Manuel González-Astudillo (Contact Author)
Board of Governors of the Federal Reserve System ( email )
20th Street and Constitution Avenue NW
Washington, DC 20551
United States
Diego Vilan
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue NW
Washington, DC 20551
United States