We serve the public by pursuing a growing economy and stable financial system that work for all of us.
We examine economic issues that deeply affect our communities.
We conduct world-class research to inform and inspire policymakers and the public.
We provide the banking community with timely information and useful guidance.
We strive to advance policy that promotes economic well-being.
Staff Report 196 |
Published August 1, 1995
I argue that Farmer and Guo's one-sector real business cycle model with indeterminacy and sunspots fails empirically and that its failure is inherent in the logic of the model taken together with some simple labor market facts.
Download Paper (pdf)