Levin, Andrew; Wieland, Volker; Williams, John - Society for Computational Economics - SCE - 2000
-based rules, which respond to inflation, the output gap and the lagged interest rate. While forecast-based rules have been …-based rules yield at best only small benefits in stabilizing inflation, output and interest rates relative to optimized outcome … the economy, these potential advantages are quantitatively unimportant in our models. However, we find that even if output …