May 2007 Issue
Federal Reserve Bank of Minneapolis 2006 Annual Report
Annual Report Essay
Modern Macroeconomics in Practice: How Theory is
Shaping Monetary Policy
Over the last three decades, macroeconomic theory and the practice of macroeconomics by economists have changed significantly—for the better. Macroeconomics is now firmly grounded in the principles of economic theory. These advances have not been restricted to the ivory tower. Over the last several decades, the United States and other countries have undertaken a variety of policy changes that are precisely what macroeconomic theory of the last 30 years suggests. 2006 Annual Report Essay.