, even when, in theory, the central bank should care about multiple goals. I offer some ideas about why this might be the …

In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output … stabilizing output gap changes, the central bank imparts inertia into output and inflation that is absent under pure discretion …. Even a fully optimizing (i.e., non-myopic) central bank operating in a discretionary policy environment achieves better …