Explaining and Forecasting the US Federal Funds RateA Monetary Policy Model for the USMatthew Clements
Print Pub Date:December 2003



Contents

Introduction
Monetary Policy Models
The History of Fed Policy Procedures, Targets and Instruments Since 1970
The Monetary Policy Model (MPM)
Making Interest Rate Forecasts Using the MPM
Comparing MPM Results with the Eurodollar Futures Market
Comparing the Two-Year Average Forecasting Errors of the MPM and Eurodollar Futures

Author

MATTHEW CLEMENTS is a freelance economist and is author of many articles on market commentaries on economics in the financial press. He was previously employed as an economist by Prebon Yamane in London.