Aksoy, Yunus; Orphanides, Athanasios; Small, David H.; … - 2005
central bank adjusts its policy rate linearly according to
the gap between inflation and its target, and the gap between … output and its potential. Under
“the opportunistic approach to disinflation” a central bank controls inflation aggressively …
when inflation is far from its target, but concentrates more on output stabilization when
inflation is close to its target …