Clark, Peter; Laxton, Douglas; Rose, David - In: Journal of Money, Credit and Banking 33 (2001) 1, pp. 42-64
A small model of the U.S. output-inflation nexus is used to examine the implications of two policy rules, one where the interest rate responds to contemporaneous inflation and one where the response is to predict future inflation. The model is asymmetric in that positive deviations of aggregate...