Olson, Eric; Enders, Walter; Wohar, Mark E. - In: Journal of Macroeconomics 34 (2012) 2, pp. 380-390
Taylor (1979) posited that a central bank faces a tradeoff between the volatility of the output gap and volatility of inflation; this trade-off has become known as the Taylor curve. Thus, the Taylor curve necessitates that the correlation between the volatilities of inflation and the output gap...
