Jang, Tae-Seok; Sacht, Stephen - 2014
inflation gap. The model is estimated via the simulated method of moments using Euro Area data from 1975Q1 to 2009Q4. In … that the model-generated auto- and cross-covariances of the output gap, the inflation gap and the nominal interest gap can … the output and inflation gap due to the impact of animal spirits on economic activity. Furthermore, over the whole time …