Wang, Guizhou; Hausken, Kjell - In: Journal of Central Banking Theory and Practice 12 (2023) 2, pp. 211-237
The Taylor (1993) rule for determining interest rates is generalized to account for three additional variables: The … various combinations of the Taylor rule, the Quantity Equation (Friedman, 1970), and the Phillips (1958) curve. The monthly US … least squares method gives better results than the Taylor rule. The optimal parameter values involve a relatively high …