Carrillo, Julio; Fève, Patrick; Matheron, Julien - In: International Journal of Central Banking 3 (2007) 2, pp. 1-38
In this paper, we propose a simple econometric framework to disentangle the respective roles of monetary policy inertia and persistent shocks in interest rate rules. We exploit the restrictions of a DSGE model that is confronted with a monetary SVAR. We show that, provided enough informative...