Such a reference rule, which becomes relevant once the conditions for policy normalization have been met, is similar to the forward-looking Taylor-type rule for optimal monetary policy derived in Clarida, Galí, and Gertler (1999).
10 The inflows of foreign direct investment (FDI) in the region amounted to around 6% of GDP in the pre-crisis years, compared with only 3.4% in the EU as a whole.