Central banks regularly monitor select financial and macroeconomic variables in order to obtain early indication of the impact of monetary policies. This practice is discussed on the Federal Reserve Bank of New York website, for example, where one particular set of macroeconomic "indicators" is...

Since Christopher Sims’s Macroeconomics and Realityʺ (1980), macroeconomists have used structural VARs, or vector autoregressions, for policy analysis. Constructing the impulseresponse functions and variance decompositions that are central to this literature requires factoring the...

Since Christopher Sims's quot;Macroeconomics and Realityquot; (1980), macroeconomists have used structural VARs, or vector autoregressions, for policy analysis. Constructing the impulse response functions and variance decompositions that are central to this literature requires factoring the...