Fuhrer, Jeffrey C. (contributor); … - 2002 - [Elektronische Ressource]
robustness,
we examine several variants of the basic equation that include alternative definitions of the
output gap, the real … intertemporal Euler equation:
y
t
= E
t
y
t+1
− σ(i
t
− E
t
π
t+1
)+η
t
, (2.1)
where y
t
is the output gap (detrended output), E
t …. Denoting the GDP chain-weighted price index
by P
t
,inflation is defined as π
t
= 400(lnP
t
− lnP
t−1
). The output gap, y
t …