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delay in the response of the rate of inflation to a monetary shock. This paper shows that an optimizing monetary model with … of both output and inflation to an interest rate shock when taking into account a time-to-build requirement for …
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In this paper, we examine the performance and robustness of optimised interest-rate rules in four models of the euro area which differ considerably in terms of size, degree of aggregation, relevance of forward-looking behavioural elements and adherence to micro-foundations. Our findings are...
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