Ashley, Richard; Tsang, Kwok Ping; Verbrugge, Randal J. - Department of Economics, Virginia Polytechnic Institute … - 2010
We estimate a monetary policy rule allowing for possible frequency dependence - i.e. allowing the central bank to respond di¤erently to persistent innovations than to transitory innovations, in both the real-time unemployment rate and the real-time inflation rate. The method is flexible, and...