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Predicting The Federal Funds Rate, Danielle Herzberg
Predicting The Federal Funds Rate, Danielle Herzberg
Undergraduate Theses and Capstone Projects
This thesis examines various economic indicators to select those that are the most significant in a predictive model of the Effective Federal Funds Rate. Three different statistical models were built to show how monetary policy changed over time. These three models frame the last economic downturns in the United States; the tech bubble, the housing bubble, and the Great Recession. Many iterations of statistical regressions were conducted in order to achieve the final three models that highlight variables with the highest levels of significance. It is important to note the economic data has high levels of autocorrelation, and that these …