Clausen, Jens Richard; Meier, Carsten-Patrick - In: Swiss Journal of Economics and Statistics (SJES) 141 (2005) II, pp. 213-246
Using a real-time data set for German GDP over the period from 1973 to 1998 we calculate various measures of output gaps and use these to calibrate and estimate Taylor-type reaction functions for the Bundesbank. Most of the reaction functions we find fit the Bundesbank's actual policy, as...