... Christiano,Eichenbaum, and Evans (2005), and Ravenna and Walsh (2006),1See, for example, Barth and Ramey (2001), Angeloni, Kashyap, and Mojon(2003), Christiano, Eichenbaum, and Evans (2005), Chowdhury, ... Average Loan Rate and the Policy Rate under Alternative Policy RulesNow, let us reexamine the above implications by using a more general policy rule. We employ the following standard Taylor rule:rt= ... differentiatedintermediate good and sells it to final-goods firms. Following Chris-tiano and Eichenbaum (1992), Christiano, Eichenbaum, and Evans(2005), and Ravenna and Walsh (2006), we consider...