Wu, Tao (contributor) - 2002 - [Elektronische Ressource]
, 1-year, 2-year, or
5-year nominal interest rate, or the “level” or “slope” of the term structure (parsimoniously
defined … rule takes the form of an interest rate feedback rule, which
is a reaction function of the short-term interest rate on the … inflation and the real output gaps
as well as on the lagged short-term interest rate:
r
1,t
= ρ
r
r
1,t−1
+(1−ρ
r
)(r
∗
1
+ θ
1 …