Pecchenino, R.A. <br/><br/>
P* Type Models:  Evaluation and Forecasts / 
R.A. Pecchenino, Robert H. Rasche. 
 - Cambridge, Mass.  National Bureau of Economic Research  1990. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w3406 .
 - Working Paper Series (National Bureau of Economic Research)  no. w3406. .
<br/><br/> August 1990. 
<br/><br/> This paper critically evaluates the Federal Reserve's p* model of inflation, and develops a model of national income determination implicit in the p* formulation. We use this model to forecast the future paths of key macroeconomic variables and investigate its behavior under a variety of deterministic monetary policy rules. These forecasts and policy simulations suggest a dynamic economic behavior inconsistent with stylized facts, and lead us to question the underlying structure of the p* formulation. 
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