include among the predetermined variables (the quot;statequot; of the economy) the vector of nonzero means of future shocks to …

of a weaker economy with higher unemployment and lower inflation and possible benefits from a lower probability or … magnitude of a (financial) crisis. A first obvious cost is a weaker economy if no crisis occurs. A second cost—less obvious, but … higher—is a weaker economy if a crisis occurs. Taking the second cost into account, Svensson (2017) shows that for …

monetary policy for financial-stability purposes, is presented. LAW has obvious costs in the form of a weaker economy if no … cost—less obvious, overlooked by previous literature, but higher—is a weaker economy if a crisis occurs. For representative …

Policy rules that are consistent with inflation targeting are examined in a small macroeconomic model of the US economy …