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How to simulate an articial increase in the 5, 10, and 30 -year interest rates in the FRB/US Model

Posted: Wed May 13, 2020 11:26 am
by StevenLByers
Hello,

I am working with the latest version of the FRB/US macro model in eviews. I am struggling as to how to simulate an increase in the 5, 10, and 30 year interest rates in the model. I am looking to see what the impact on GDP, Employment and Inflation would be. Any suggestions welcome. Thank you Steve

Re: How to simulate an articial increase in the 5, 10, and 30 -year interest rates in the FRB/US Model

Posted: Thu May 14, 2020 9:33 am
by EViews Matt
Hello,

I assume you're referring to model variables RG5, RG10, and RG30. A simple way to explore this type of alteration to the model is to exclude and override any or all of those variables. Excluding a variable causes it to be treated as exogenous, and overriding a variable lets you provide your own series data for that variable.

Re: How to simulate an articial increase in the 5, 10, and 30 -year interest rates in the FRB/US Model

Posted: Mon May 18, 2020 6:51 am
by StevenLByers
Thank you MAtt