interest rate is set as a function of the deviation of the inflation rate from its target rate, the output gap, and Tobin's q …

in the relative weight on the output and inflation gaps. Three are "financial" Taylor rules, that is, augmented with one … traditional rules the best performing one is output aggressive instead of inflation aggressive. Second, because the financial rule … with Tobin's q outperforms the traditional inflation-aggressive one under all dimensions and cases. However, the authors …

incorporate financial indicators) that differ in the relative weight they put on output and inflation gaps. The other three are … rules is output aggressive instead of inflation aggressive and, second, because the financial rule with Tobin's q … outperforms the traditional inflation-aggressive one under all dimensions and cases. However, the authors cannot draw a univocal …