Dennis, Richard J. (contributor) - 2003 - [Elektronische Ressource]
: Economic Research, Mail Stop 1130, Federal Reserve Bank of San
Francisco, 101 Market St, CA 94105, USA. Email: richard … by holding real money balances. The representative household’s
lifetime expected utility is given by
U = E
t
∞
X
i=0
β
i … dictated by the behavior of households and firms, in order to minimize the
loss function
Loss(t,∞ )=E
t
∞
X
j=0
β
j
h
(π
t+j
−π …