Adam, Klaus (contributor); Billi, Roberto M. (contributor) - 2005
value of the natural real rate
leads to an output gap of about -8% and an annual rate of inflation around
1
For recent … (7)
{y
t+i
,π
t+i
,i
t+i
} given for i ≥ 1 (8)
where π
t
denotes the inflation rate, y
t
the output gap, and i
t
the …
subsidy that neutralizes the distortions from monopolistic competition, and the output gap to
be defined as the difference …