Gavin, William T.; Keen, Benjamin D.; Pakko, Michael R. - Federal Reserve Bank of St. Louis - 2007
adopts the optimal policy. When the monetary policy rules are modified to include some weight on a price path, the economy …. Using U.S. data from the indexed bond market from 1997 to 2000,
McCulloch and Kochin (2000) estimate that the volatility of … receives a payment, R
t-1
B
t-1
, from its nominal bond holdings, B
t-1
, where R
t
is the gross
nominal interest rate earned …