12  Two articles published by the ECB have dealt with various aspects of euro area country differentials, namely “Output growth differentials in the euro area: sources and implications” in the April 2007 issue of the Monthly Bulletin and “Monetary policy and inflation differentials in a heterogeneous currency area” in the May 2005 issue of the Monthly Bulletin.
Plugging these estimates into a 1993 Taylor rule produces a federal funds rate very close to our current target range for the policy rate.