Duca, John V. (contributor); Wu, Tao (contributor) - 2008
output gap
based inflation equation. They find a positive link between these two variables, but also much
error … relevant coefficients: the sensitivity of
output to the real interest rate and that of inflation to the output gap.
JEL … of the neutral
real interest rate, often in a Taylor-Rule. In a system with IS and output-gap inflation equations …