Isard, Peter; Laxton, Douglas; Eliasson, Ann-Charlotte - In: International Tax and Public Finance 6 (1999) 4, pp. 537-577
Using stochastic simulations and stability analysis, the paper compares how different monetary policy rules perform in a moderately nonlinear model with a time-varying NAIRU. Rules that perform well in linear models but implicitly embody backward-looking measures of real interest rates (such as...