Benati, Luca (contributor); Surico, Paolo (contributor) - 2007
-policy) coefficient.
12
ECB
Working Paper Series No 824
October 2007
where π
t
, y
t
and r
t
are inflation, the output gap, and the … inflation
and the output gap in the monetary rule. The three structural disturbances–null
π,t
, null
y,t
,
null
r,t
–are … output gap, and
the Federal Funds rate gap.
3.2 Bayesian estimation
We estimate (12)-(14) via Bayesian methods. DSGE models …