Paez-Farrell, Juan - School of Business and Economics, Loughborough University - 2009
unconditional loss, when it operates under the timeless perspective than under discretion. This paper consider the robustness of … policymaker. It finds that for reasonable parameter values discretion can be superior to the timeless perspective. The reason for … this stems from the fact that the timeless perspective policy varies more with the degree of inflation persistence than …