Faryna, Oleksandr; Jónsson, Magnús; Shapovalenko, Nadiia - 2021
central bank's loss function, and the welfare cost - in a small open economy vis-à-vis a closed economy. Disinflation is … either more costly or less beneficial in the small open economy, but the results vary quantitatively depending on the measure … stabilisation should be lower in the small open economy if the central bank minimises the loss function, but higher if it maximises …