The paper aims to answer the question on whether output gap is influenced by transmission of monetary policy shocks. For Nigeria, using database time series data from Central Bank Nigeria and National Bureau Statistics (2002M01 2018M12), we estimate models Generalized Method Moments, Autoregressive Distributed Lag Differenced Ordinary Least Squares estimation techniques. We analyze empirical re...

This paper undertakes a cross-country study on the price-output gap relationship for selected industrial countries (Japan, the U.S., Germany, the U.K. and Canada). The estimation results show that the price-output gap relationship in these countries can be classified into two categories: (1) a Phillips Curve-type (in which the output gap fluctuation affects the inflation rate); and (2) a NAIRU ...

Yes, it makes a lot of sense. Using the Smets and Wouters (2007) model of the U.S. economy, we find that the role of the output gap should be equal to or even more important than that of annualized inflation when designing a simple loss function to represent household welfare. The high weight on the output gap is driven by several important characteristics in the estimated model, including a lo...