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Can central banks' monetary policy be described by a linear (augmented) Taylor rule or by a nonlinear rule?
Introduction
A brief review of the literature on the Taylor rule
Specification and estimation of the linear Taylor rule
The linear Taylor rule
Data, variables and additional hypotheses to test
Empirical results
Specification and estimation of the nonlinear Taylor rule
The nonlinear Taylor rule
Linearity versus nonlinearity
Empirical results
Conclusions
ANNEX
References
The nonlinear Taylor rule
Linearity versus nonlinearity
Empirical results
Conclusions
ANNEX
References
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