Singh, Ajay Pratap; Nikolaou, Michael - In: Economics - The Open-Access, Open-Assessment E-Journal 8 (2014), pp. 1-67
The celebrated Taylor rule provides a simple formula that aims to capture how the central bank interest rate is adjusted as a linear function of inflation and output gap. However, the rule does not take explicitly into account the zero lower bound on the interest rate. Prior studies on interest...
