Sentences with phrase «policy reaction function»

Some market participants have argued that housing's contribution to real GDP is but a shadow of its former self (2.6 % in 2015 vs. 3.3 % in 2005), but a substantial decline will still weigh on Federal Reserve's policy reaction function (especially given still - fresh memory of the housing downturn).

«However, using the rules as reference points and discussing why our policy may differ from these policy descriptions could go some way in helping to explain our own policy reaction function to the public.»

Not exact matches

By conducting policy in a transparent way and communicating what is important in determining the central bank's reaction function, I think policymakers can strike the best balance between a monetary policy that fully incorporates the complexity of the world as it is, while, at the same time, retaining considerable clarity about how the FOMC is likely to respond to changing circumstances.

This makes China's economic reaction function somewhat difficult for market participants to anticipate, because reactions on changing economic conditions may come in the form of fiscal or monetary policy, or a combination of both (the «dual bazooka» approach).

Plosser:» One way to do this is for the central bank to articulate a reaction function or rule that will guide policy decisions.»