Kara, Amit (contributor); Nelson, Edward (contributor) - 2003 - [Elektronische Ressource], rev
), R
t
is the nominal interest rate, π
t
the quarterly
inflation rate, σ > 0, λ > 0, and v
t
is an IS shock. The …-adjustment fashion to expected future (quarterly annualized) CPI inflation and
levels and first differences of detrended (here, HP … that corresponding to the election of the Thatcher
Government in 1979 Q2. While inflation targeting was not introduced …