Monetary policy loss functions: two cheers for the quadratic
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چکیده
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منابع مشابه
A Feasible and Objective Concept of Optimality: the quadratic loss function and U.S. monetary policy in the 1960s∗
The introduction of linear-quadratic methods in monetary economics in the 1960s tinged the intense debate about the optimal monetary policy instrument. These methods were widely used outside monetary economics because they delivered easy solutions to complex stochastic models. This same reason explains the success of quadratic loss functions according to the conventional wisdom among monetary e...
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