Ikeda, Taro - In: Economics Letters 124 (2014) 3, pp. 487-489
Branch (2014) shows that the asymmetric preference of professional forecasters enhances the fit of the original Taylor … rule with respect to recent US monetary policy. This paper investigates the stability of the Taylor rule with asymmetric … preference under adaptive learning. We find that when policy omits asymmetry and learning volatility, a more vigorous response to …