Edge, Rochelle M. (contributor); Laubach, Thomas (contributor) - 2008
optimized Taylor rule and yield welfare outcomes very close to the first-best.
The remainder of the paper is organized as … types of policy rules. The first is a version of the standard Taylor Rule,
where the interest rate is determined by … welfare losses close to that which obtains under the fully optimal policy.
The optimized Taylor rule (the second column of …