You have estimated a government reaction function, i.e., a ...

[lbcchick]

You have estimated a government reaction function, i.e., a multiple regression equation, where a government instrument, say the federal funds rate, depends on past government target variables, such as inflation and unemployment rates.

Question 2

Write an essay about where valid instruments come from. Part of your explorations must deal with checking the validity of instruments and what the consequences of weak instruments are.

[xoxo123]

Answer to Question 1



Answer to Question 2

[lbcchick]

Excellent

[Liddy]

TYSM