We combine an estimated monetary policy rule featuring time-varying trend inflation and stochastic coefficients with a … medium scale New Keynesian framework calibrated on the U.S. economy. We find the impact of variations in trend inflation on … counterfactual exercises suggest that the change in the Federal Reserve's policy response to inflation is likely to have been the …

cointegration to evaluate and verify the relationship. In addition, this research added the inflation rate to the model … specification to investigate the inflation-growth interaction. The results revealed that both methods of cointegration provided … showed the positive impact of depth and the negative impact of inflation on economic growth, thereby confirming the strength …

out-of-sample forecasting exercise for U.S. GDP growth and inflation suggests that models that allow for parameter …