Beck, Günter W. (contributor); Wieland, Volker (contributor) - 2006
rule by
allowing for imperfect knowledge regarding unobservables such as potential output and
equilibrium interest rates … around the central bank’s inflation target. Its weak-
ness is that it relies on knowledge of unobservables such as the …⁄.
However, this component relies on knowledge of unobservables such as the equilibrium
real interest rate, r⁄, or potential …