Beck, Guenter W.; Wieland, Volker - Center for Financial Studies - 2007
knowledge regarding unobservables such as potential output and equilibrium interest rates. We formulate a novel characterization … for including money in the interest rate rule by allowing
for imperfect knowledge regarding unobservables such as …’s inflation target. Its weakness is that it relies on knowledge of un-
observables such as the equilibrium real interest rate and …