Yehoue, Etienne B. - International Monetary Fund (IMF) - 2012
conclusion is that an increase in inflation targets gives rise to additional welfare costs, even after the extra room to maneuver … additional welfare costs of raising inflation targets from 2 to 4 percent are estimated at about 0.3 percent of annual real … yield welfare costs as high as 7 (respectively 30) percent of real income for raising inflation targets from 2 to 4 …