Some further evidence on interest-rate smoothing : the role of measurement errors in the output gap

Mikael Apel and Per Jansson

It has been suggested that interest-rate smoothing may be partly explained by an omitted variable that relates to conditions in financial markets. We propose an alternative interpretation that suggests that it relates to measurement errors in the output gap.

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Year of publication:	March 2005
Authors:	Apel, Mikael ; Jansson, Per
Publisher:	Stockholm : Sveriges Riksbank
Subject:	Interest-rate smoothing \| Measurement errors \| Output gap \| Statistischer Fehler \| Statistical error \| Bruttoinlandsprodukt \| Gross domestic product \| Theorie \| Theory \| Produktionspotenzial \| Potential output \| Messung \| Measurement \| Schätzung \| Estimation \| Zinspolitik \| Interest rate policy \| Konjunktur \| Business cycle \| Taylor-Regel \| Taylor rule