Summary and Conclusions (Production Side of the NIPA Accounts)

Abstract

This chapter summarizes the findings of the model’s major models: consumption, investment exports, the prime interest rate, and government spending; notes Cowles models outperformed DSGE and VARs, and notes that while the model finds fiscal stimulus completely offset by measurable crowd out, monetary policy (changing the money supply) did seem to have an effects, but only had a small effect, on the real economy. A hypothesis is offered in the chapter as to why.