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individuals use simple rules of thumb (heuristics) to forecast the future inflation and output gap. We compare this model with the …
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rationality. Economic agents form their expectations using heuristics - they choose between a few simple rules based on their past …
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individuals use simple rules of thumb (heuristics) to forecast the future inflation and output gap. We compare this model with the …
Persistent link: https://www.econbiz.de/10013316538
computationally efficient filtering algorithm to estimate the nonlinear model. The algorithm is shown to be accurate in approximating …
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computationally efficient filtering algorithm to estimate the non-linear model. Calculations are greatly simplified by appropriate … augmentation of the transition equation and exploiting the conditionally linear and Gaussian structure. The algorithm is shown to …
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As the 'Volcker shock' is believed to have generated useful information on the effects of monetary policy, this paper develops a simple procedure to identify other unanticipated monetary contractions. The approach is applied to a panel data set spanning 162 countries (over the period 1970-2017),...
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