Orphanides, Athanasios; Williams, John C. - Federal Reserve Board (Board of Governors of the … - 2007
, and a smaller response to the perceived unemployment gap than would be optimal if everyone had perfect knowledge of the … problem regarding the output gap; and Laubach and Williams (2003), Orphanides and Williams
(2002) and Clark and Kozicki (2005 … output gap for our analysis, recognizing that the
two are related by Okun’s (1962) law.
4
In his 1993 exposition, Taylor …