Aksoy, Yunus; Orphanides, Athanasios; Small, David; … - Center for Financial Studies - 2005
opportunistic and linear rules.
JEL Classification: E31, E52, E58, E61
Keywords: Inflation targeting, monetary policy … monetary policy holds that
a central bank should balance the objective of achieving and maintaining low inflation
against the … should be roughly linear. Such an approach
to monetary policy is consistent with a loss function that penalizes squared …