Gaspar, Vítor (contributor); Smets, Frank (contributor); … - 2007
magnitude of required changes in nominal interest rates. Such a property is particularly relevant as a means to alleviate the … stability. Finally, we also found, using the Smets and Wouters (2003) model which includes a wide variety of frictions and is … estimated for the euro area, that the price level is stationary under optimal policy under commitment. The results obtain when …