The FRB-US model retains much of the underlying structure in terms of equilibrium  BIS Review 1/1997  -5-  relationships and even more of the fundamental simulation properties of the MPS model, but significantly modernizes the estimation of the model and the treatment of expectations.
The vision in the new work is to separate macro-dynamics into adjustment cost and expectations formation components, with adjustment costs imposing a degree of inertia and expectations introducing a forward-looking element into the dynamics. The net result is a structure that integrates rational expectations into a sticky-price model. In this respect, the new model follows closely the approach pioneered by John Taylor.