Nishiyama, Shin-Ichi - Econometric Society - 2004
‚¬Ëœbuffer’ role of an inflation target. In this paper, based on the stylized framework of a central bank's linear-quadratic dynamic … inflation target in reducing the long run stabilization cost stemming from the liquidity trap. We prove the existence of theââ … bank's loss function evaluated at the steady state is decreasing and convex function of an inflation target. Finally, these …