01779cas a2200265 a 4500 AALejournalIMF021121 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513550916 1018-5941 BD-DhAAL BD-DhAAL Williams, Peter. Reading the Stars / Peter Williams, Yasser Abdih, Emanuel Kopp. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Following the global financial crisis, significant uncertainty has existed around the U.S. economy's steady state equilibrium. This paper uses a factor model to provide a new approach to estimating 'the stars' (i.e. the neutral interest rate, maximum employment, and the level and growth rate of potential output) that are most consistent with a medium-term equilibrium where inflation converges to the FOMC's two percent target. It is applicable to any country with an inflation targeting central bank. It also explicitly incorporates estimates of the extensive margin of slack in the labor market, which has proven to be an important factor in describing the post-financial crisis landscape. Mode of access: Internet Abdih, Yasser. Kopp, Emanuel. IMF Working Papers; Working Paper ; No. 2020/136 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/136/001.2020.issue-136-en.xml IMF e-Library