August 07, 2023

Corrected Version Investors and economists spend a great deal of time estimating and anticipating market reactions to a variety of economic disturbances and they use these estimates how they see fit. The former can use them to calculate the impact of the disturbances on asset returns while the policymakers use them to design policy initiatives that maximize the likelihood of reaching their economic objectives. Developing reliable estimates is of utmost importance to both policymakers and investors alike. But how to do so?

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