Liu, Zheng; Waggoner, Daniel F.; Zha, Tao - Federal Reserve Bank of San Francisco - 2009
volatilities of output, inflation, and other macroeconomic
variables in both regimes. Third, there is little empirical evidence in … observations
of the dynamics of inflation, output, and other macroeconomic variables.5 Unlike
Sims and Zha (2006) where the number …, under which the nominal interest rate is set to respond to
its own lag and deviations of inflation and output from their …