dynamics of inflation implied by macroeconomic data, the model needs to assume an average duration of price contracts which is …

monetary policy shocks. Endogeneity implies a correlation between regressors and the error term, and hence, an asymptotic bias … Keynesian model that the asymptotic OLS bias is proportional to the fraction of the variance of regressors accounted for by … in monetary policy rules, the endogeneity bias is small. Using simulations, we show that, for realistic sample sizes, the …