Batini, Nicoletta; Levine, Paul; Pearlman, Joseph - Federal Reserve Board (Board of Governors of the … - 2004
We examine the performance of forward-looking inflation-forecast-based rules in open economies. In a New Keynesian two-bloc model, a methodology first employed by Batini and Pearlman (2002) is used to obtain analytically the feedback parameters/horizon pairs associated with unique and stable...