We estimate and compare two models, the Generalized Taylor Economy (GTE) and the Multiple Calvo model (MC), that have … to those of the standard models such as the Calvo and its popular variant, using the ad hoc device of indexation. The …

high levels of precautionary liquidity hoarding the optimal policy response of a Taylor rule is shown to indicate a zero … reserves can act as the main tool of monetary policy, that is shown to provide higher welfare gains in relation to a simple … Taylor rule. This result is shown to hold at the zero-bound and it is independent of the precautionary demand for liquidity …

This paper uses two-dimensional asymmetric Taylor reaction functions for 16 OECD-countries to account for different … whether the central bank systematically deviates from the Taylor rule. Using a Panel-GMM we observe that in the OECD …

imperfect information and model uncertainty. Finally, we assess how proposed simple rules, such as the Taylor rule, square with …