Determining optimal monetary speed limits
AbstractThe proposal by Walsh (2003) that policy should include a speed limit by having the change in the output gap as an additional term in a Taylor-type rule is shown to be exactly optimal given an appropriate parameterization.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 116 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/ecolet
Speed limit rule; Optimal monetary policy; Determinacy;
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