Orphanides, Athanasios - 2007
of explicit
reference to developments in real economic activity.
5
3 The Classic Taylor Rule and its Generalizations
The … response parameters
to one half. The result was what became known as the classic Taylor rule:
i = 2+… + 12(… ¡2)+ 12(q ¡q⁄): (7 …, Gali, and Gertler, 1999 and papers in Taylor, 1999) and the
replacement of the \LM curve" with a Taylor rule in treatments …