Designing a Simple Loss Function for Central Banks : Does a Dual Mandate Make Sense? /

Yes, it makes a lot of sense. This paper studies how to design simple loss functions for central banks, as parsimonious approximations to social welfare. We show, both analytically and quantitatively, that simple loss functions should feature a high weight on measures of economic activity, sometimes...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Debortoli, Davide
Weitere Verfasser: Kim, Jinill, Linde, Jesper, Nunes, Ricardo
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2017.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2017/164
Online Zugang:Full text available on IMF