Erceg, Christopher J.; Guerrieri, Luca; Gust, Christopher J. - 2004
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ponents, and to the form of the monetary policy rule. Moreover, we argue that our
baseline calibration if anything tends to … households.
2.3 Monetary Policy
We assume that the central bank follows an interest rate reaction function similar
in form to the … when output growth rises above some target value. With some allowance
for interest rate smoothing, monetary policy is …