Edge, Rochelle M. (contributor); Laubach, Thomas (contributor) - 2008
rules under parameter uncertainty
respond less to the output gap and more to price inflation than would be optimal absent … optimal Taylor rules under parameter uncertainty
respond less to the output gap and more to price inflation than would be …-state level, πp,t ≡ logΠp,t −logΠp,∗, and to the output gap,
xt = logYt − log tildewideYt. We also allow for policy inertia by …