Gerberding, Christina; Seitz, Franz; Worms, Andreas - In: Credit and Capital Markets 45 (2012) 4, pp. 501-529
The paper derives the monetary policy reaction function implied by using money as an indicator variable. It consists of an interest rate response to deviations of the inflation rate from target, to the change in the output gap, to money demand shocks and to the lagged interest rate. We show that...