Klose, Jens - In: International Journal of Monetary Economics and Finance 4 (2011) 3, pp. 279-296
argue that due to the very low interest rates classical monetary policy rules like, e.g., the Taylor rule could lead to … the inflation expectations. Our results indicate that using this modified Taylor rule shows similar tendencies in the … reaction coefficients as the standard Taylor rule at least if no interest smoothing term is included. …