Monetary Policy Loss Functions: Two Cheers for the Quadratic
Preprint
- 1 September 1999
- preprint
- Published by Elsevier in SSRN Electronic Journal
Abstract
The implications for optimal monetary policy of relaxing the normal assumption of a quadratic loss function are examined. Several alternative specifications are considered, but the results suggest that the convenient assumption of quadratic losses may not be that drastic.Keywords
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