4.1 Monetary Policy
The empirical results for the extended Taylor rule are reported in Table 2a
(for the nominal policy rate, NPR) and Table 2b (for the UF-indexed policy
rate, UF-PR). The output gap and its interaction with the country spread are
statistically significant (at conventional significance levels of 5 or 10 percent)
in most cases. The coefficients reflect expected signs of all coefficients of the
latter variables in both tables.