Orphanides, Athanasios (contributor); … - 2005
natural rates.
In contrast, difference rules, in which the change in the interest rate is determined by the
inflation rate and … the change in the unemployment rate, perform well when knowledge is
both perfect and imperfect.
Keywords: Natural rate of … interest, natural rate of unemployment, rational expectations,
learning, monetary policy rules.
JEL Classification: E52
∗We …