The FOMC Versus the Staff, Revisited: When Do Policymakers Add Value?

7 Pages Posted: 18 Apr 2018

See all articles by Carola Binder

Carola Binder

Haverford College - Department of Economics

Samantha Wetzel

Haverford College

Date Written: April 9, 2018

Abstract

The Board of Governors staff and the Federal Open Market Committee both publish macroeconomic forecasts. Romer and Romer (2008) show that policymakers' attempts to add information to the staff forecasts are counterproductive. In more recent years, however, policymakers have improved upon staff forecasts. We show that policymakers' value-added is greater when economic conditions are unfavorable or uncertain.

Keywords: Monetary Policy, Federal Reserve, Forecasting

JEL Classification: E3, E5, D1

Suggested Citation

Binder, Carola and Wetzel, Samantha, The FOMC Versus the Staff, Revisited: When Do Policymakers Add Value? (April 9, 2018). Available at SSRN: https://ssrn.com/abstract=3163456 or http://dx.doi.org/10.2139/ssrn.3163456

Carola Binder (Contact Author)

Haverford College - Department of Economics ( email )

Haverford, PA 19041
United States

Samantha Wetzel

Haverford College ( email )

Haverford, PA 19041
United States

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