Nelson, Edward (contributor) - 2007 - Rev.
)
where π
t
is quarterly inflation, π
e
is expected inflation, y
t
– y
t
* is the output gap, and u
t
is
a shift factor … value taken by the output gap. The
monetary view of inflation thus attributes the 1970s inflation to excess demand and …
contemplated in general.
6
expected path of the output gap, matter for current inflation but not expected future
inflation …