Faust, Jon; Henderson, Dale W. - Federal Reserve Board (Board of Governors of the … - 2004
optimization. The core requirements of the ITF are an explicit long-run inflation goal and a commitment to transparency in … that either obfuscate or, in some cases, explicitly contradict the dictates of optimization in a stabilization …-policy paradigm. In this paradigm, the central bank has an objective function that places weight on both inflation and output …