Monetary Policy and the Hybrid Phillips Curve
This paper argues that existing empirical models of interest rate rules are too simplistic. The hybrid Phillips curve implies that policymakers should respond to both current and expected future inflation rates, in contrast to existing models. We provide evidence that UK policymakers do this.
|Date of creation:||Jul 2007|
|Date of revision:||Jul 2007|
|Contact details of provider:|| Postal: Via Patara, 3, 47921 Rimini (RN)|
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