Castro, Vítor - Núcleo de Investigação em Políticas Económicas … - 2008
The Taylor rule establishes a simple linear relation between the interest rate, inflation and output gap. However, this … are indeed following a linear Taylor rule or, instead, a nonlinear rule. At the same time, it also analyses whether that … and the Bank of England tend to follow a nonlinear Taylor rule, but not the Federal Reserve of the United States. In …