Minford, Patrick; Srinivasan, Naveen - C.E.P.R. Discussion Papers - 2010
The New-Keynesian Taylor-Rule model of inflation determination with no role for money is incomplete. As Cochrane (2007a … the terminal condition. This would be therefore a `threat/trigger strategy' complementing the Taylor Rule --- only to be … invoked if inflation misbehaved. Thus we answer the criticisms levelled at the Taylor Rule that it has no credible mechanism …