RDP 1999-08: Inflation Targeting and Output Stabilisation Equation (3)

L t = E t ∑ s=t ∞ δ s−t [ ( 1−λ ) ( π s − π ∗ ) 2 +λ ( y s − y s ∗ ) 2 ] MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamitamaaBa aaleaacaWG0baabeaakiabg2da9iaadweadaWgaaWcbaGaamiDaaqa baGcdaaeWbqaaiabes7aKnaaCaaaleqabaGaam4CaiabgkHiTiaads haaaGcdaWadaqaamaabmaabaGaaGymaiabgkHiTiabeU7aSbGaayjk aiaawMcaamaabmaabaGaeqiWda3aaSbaaSqaaiaadohaaeqaaOGaey OeI0IaeqiWda3aaWbaaSqabeaacqGHxiIkaaaakiaawIcacaGLPaaa daahaaWcbeqaaiaaikdaaaGccqGHRaWkcqaH7oaBdaqadaqaaiaadM hadaWgaaWcbaGaam4CaaqabaGccqGHsislcaWG5bWaa0baaSqaaiaa dohaaeaacqGHxiIkaaaakiaawIcacaGLPaaadaahaaWcbeqaaiaaik daaaaakiaawUfacaGLDbaaaSqaaiaadohacqGH9aqpcaWG0baabaGa eyOhIukaniabggHiLdaaaa@61AE@