Tetlow, Robert (contributor); Ironside, Brian (contributor) - 2006
macroeconomic variables are the out-
put gap, the inflation rate and the federal funds rate, as well as beliefs on the long-run
8 …
April 2006
target rate of inflation and the what the equilibrium real rate of interest will be in
the long run. These … particular, the coefficients of
theVARsaretakenasfixed over time, while agents’ perceptions of long-run values
for the inflation …