Rudebusch, Glenn D.; Sack, Brian P.; Swanson, Eric T. - Federal Reserve Bank of San Francisco - 2006
)
where i
∗
denotes the steady-state nominal interest rate, y
t
denotes output, π
t
denotes the
inflation rate (equal to P
t
/P … policymaking institutions for the study
of other macroeconomic variables, such as output and inflation. These limitations generally … impulse responses
of macroeconomic variables, such as output and inflation, researchers do not agree on how
to specify these …