Monetary policy loss functions: two cheers for the quadratic

The implications for optimal monetary policy of relaxing the normal assumption of a quadratic loss function are examined. Several alternative specifications are considered, but the results suggest that the convenient assumption of quadratic losses may not be that drastic.

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Year of publication:	1999-09
Authors:	Chadha, Jagjit ; Schellekens, Philip
Institutions:	Bank of England

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Extent:	application/pdf
Series:	Bank of England working papers.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005737944