Bofinger, Peter; Mayer, Eric - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2006
This note shows that the Svensson versus McCallum and Nelson controversy battled in the Federal Reserve Bank of St. Loius Review (September/ October 2005) can be mapped into a static version of a New Keynesian macro model that consists of an IS-equation, a Phillips curve and an inflation...