Levin, Andrew; Wieland, Volker; Williams, John C. - Federal Reserve Board (Board of Governors of the … - 1998
-difference of the federal funds rate responds to the current output gap and the deviation of the one-year average inflation rate … Taylor (1993) and Henderson and McKibbin (1993), in which the level of the federal funds rate responds to the output gap and … output-inflation volatility frontier of each model for alternative specifications of the interest rate rule, subject to an …