a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …

model averaging in policy design. Interestingly, a simple difference rule with the same coefficients on inflation and output …