Scharnagl, Michael; Gerberding, Christina; Seitz, Franz - In: International Finance 13 (2010) 3, pp. 409-441
inflation and the output gap. The present paper investigates whether the performance of this type of interest rate rule can be … takes into account the fact that real‐time data on both actual and potential output, and hence the output gap, may be … subject to substantial measurement errors. Broadly speaking, we find that the greater the degree of output gap uncertainty …