Edge, Rochelle M.; Laubach, Thomas; Williams, John C. - Federal Reserve Board (Board of Governors of the … - 2007
's utility-based welfare criterion and about the economy's natural rate measures of interest and output. We analyze the … find that the natural rates of interest and output are imprecisely estimated. We then show that, relative to the case of … minimizing deviations of output from its natural rate, the “output
gap,” and minimizing fluctuations in price and wage inflation …