Söderlind, Paul; Söderström, Ulf; Vredin, Anders - Sveriges Riksbank - 2003
Recent research suggests that commonly estimated dynamic Taylor rules augmented with a lagged interest rate imply too … much predictability of interest rate changes compared with yield curve evidence. We show that this is not sufficient proof … gap, and the interest rate, and we compare with evidence from survey data and a VAR model. We find that the strongest …