Orphanides, Athanasios; Williams, John C. - Federal Reserve Bank of San Francisco - 2006
natural rate of output and implied
output gap.
3For analyses of the implications of misperceptions for policy design see … output gap for our
analysis, recognizing that the two are related by Okun’s (1962) law. In his 1993 exposition,
Taylor … examined response parameters equal to 1/2 for the inflation gap and the output gap,
which, using an Okun’s coefficient of 2 …