Levine, Paul; McAdam, Peter; Pearlman, Joseph; Pierse, … - 2021
methodology to three simple interest-rate rules: inflation-forecast-based (IFB) rules with a discrete forward horizon, one … targeting a discounted sum of forward inflation, and a current wage inflation rule. We use an estimated DSGE model of the euro …, indicating that policy can be highly forward-looking without compromising stabilization. The wage inflation rule dominates …