Orphanides, Athanasios; Williams, John C. - Federal Reserve Board (Board of Governors of the … - 2007
, innovations are generated from Gaussian distributions with variances re-
ported above. The innovations are assumed to be serially … and unemployment. In terms of the model, we add innovations to the
natural rate equations, introduce the central bank … innovations that
are twice as large. The layout of the table is the same as Table 1 except that we have added
columns reporting …