6 We made great advances in transparency and communications, with the initiation of quarterly press conferences and the Summary of Economic Projections (SEP), which comprises the individual economic forecasts of FOMC participants. During that time, then–Board Vice Chair Janet Yellen led an effort on behalf of the FOMC to codify the Committee’s approach to monetary policy.
Frankel and Rockett (1988) joined the debate and underscored the problems that might arise if policy-makers decided to coordinate using the wrong macro model of the economy.4 The authors conducted a “horse race” with 11 of the most popular models of the time, and found dramatically different results depending on which model was chosen.