functions because the latter require shock identification, which is inherently a difficult process …

functions because the latter require shock identification, which is inherently a difficult process …

needed to generate realistic degrees of persistence in inflation and output-gap variables. A major policy issue is whether it … is desirable for monetary policy to respond strongly to the output gap. The paper argues that the latter is unobservable …

needed to generate realistic degrees of persistence in inflation and output-gap variables. A major policy issue is whether it … is desirable for monetary policy to respond strongly to the output gap. The paper argues that the latter is unobservable …