Jondeau, Eric (contributor); … - 2007
policy rule, in which the interest rate is set in an inertial manner
to respond to inflation and the output gap (the …
is that the policy rule does not respond to output gap anymore. Imposing policy homo-
geneity also alters some structural ….102
1.427
0.105
1.361
0.105
1.705
0.076
Policy rule: output gap
ψ
y
0.458
0.104
0.361
0.119
0.005
0.005
0.003
0.003
0.544
0 …