Orphanides, Athanasios; Williams, John C. - Federal Reserve Bank of San Francisco - 2006
elements, the
literature that has studied inflation targeting in the context of formal models has largely
described inflation … consider two alternative models of expectations
formation. One model, used in most monetary policy research, is rational … unstable models. Each period of the
simulation, we compute the root of maximum modulus of the forecasting VAR excluding
the …