Macroeconomic Theory
Tying Things Together
Nathaniel Cline
Agenda
1
The “Fed” Model
2
Analyzing shocks
3
Diagnosing macro changes
Attendance
The “Fed” Model
The Fed Model
The Fed model is a framework that uses the IS curve, the MP curve, and the Phillips curve to link interest rates, the output gap, and inflation.
Policy makers and professional economists use the model to analyze, forecast, and tweak the economy
The Fed Model
The Fed Model
Fed Model Step 1
Fed Model Step 2
Fed Model Step 3
Fed Model Step 4
Fed Model Step 5
Fed Model Step 6
Shocks
Analyzing shocks
Diagnosing macro changes
Macroeconomic Theory Tying Things Together Nathaniel Cline