The Economic Research Department The mission of the Research Department is to conduct innovative economic research on monetary policy and other issues of importance to the Bank and the Federal Reserve System and to communicate the results of this research to policymakers, other researchers, and the general public.

Economic Research News

Research Working Paper: Monetary-Fiscal Policy Interactions and Fiscal Stimulus

Davig and Leeper demonstrate how the impact of higher government spending depends on household's expectations of future monetary and fiscal policy. (November 2009)

Kansas City Financial Stress Index
	The Kansas City Financial Stress Index (KCFSI) is a monthly measure of stress in the U.S. financial system based on 11 financial market variables.

Research Working Paper: Nested Forecast Model Comparisons: A New Approach to Testing Equal Accuracy

This paper develops new tests for determining whether out-of-sample forecasts from competing models are equally accurate. (August 2009)

Research Working Paper: In-Sample Tests of Predictive Ability: A New Approach

This paper develops regression tests for determining whether a variable has enough predictive content to improve the accuracy of forecasts. (August 2009)