terms of the intended path for inflation while involving costs in terms of risks and side effects that need to be balanced …

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

target inflation rates as low as 2 percent. However, the effects of the constraint are non-linear with respect to the inflation … percent. The variability of output increases significantly and that of inflation also rises somewhat. Also, we show that the … increasingly short of potential with lower inflation targets. …

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