Adam, Klaus (contributor); Billi, Roberto M. (contributor) - 2005
even further
when inflation is partly determined by lagged inflation in the Phillips curve. These results
emerge because … value of the natural real rate
leads to an output gap of about -8% and an annual rate of inflation around
1
For recent … identical to the efficient allocation.
1
-1.8%.
3
The fall in both output and inflation is found to be considerably larger
than …