Trehan, Bharat (contributor); Wu, Tao (contributor) - 2004
Time Varying Equilibrium Real Rates and
Monetary Policy Analysis
∗
Bharat Trehan and Tao Wu
†
Federal Reserve Bank of … provides a benchmark for monetary policy in terms of three ar-
guments: the equilibrium real interest rate, the output gap and … the inflation rate.
Despite its apparent simplicity, it turns out to describe recent monetary policy in
the U.S. rather …