In 2022, our work is primarily related to the Federal Reserve’s dual mandate of maximum employment and stable prices, in particular the goals in the Fed’s new monetary policy framework. The Fed currently faces decisions about when to raise interest rates, so research on new empirical tools and theoretical models is timely and could help inform the current policy.
JFI’s macro program aims to address three main questions:
- What are reliable quantitative indicators of “broad-based” and “inclusive” employment?
- How does the pursuit of stable prices and maximum employment affect people in different demographic groups or parts of the country?
- What are the theoretical trade-offs between stable prices and maximum employment?
Economic events and the direction of the policy debate drive our analysis; however, we are committed to a set of projects, such as research briefs to explain the goals of monetary policy; data metrics for the Fed’s new goals; and macroeconomic research using a cutting-edge distributional macro model–referred to as a Heterogeneous Agent New Keynesian model.
Our program’s primary audiences are policymakers and their staff, other macroeconomic experts in academia and the policy community, as well as the general public. Our analysis in its many formats will respect the differences in technical backgrounds and interests of our audiences. We welcome feedback on our new program and opportunities to collaborate.