RDP 2014-02: Fiscal Policy and the Inflation Target Equation (5)

L = ( π * 0.5 ) 2 + 22 σ 2 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamitaiabg2 da9maabmaabaGaeqiWda3aaWbaaSqabeaacaGGQaaaaOGaeyOeI0Ia aGimaiaac6cacaaI1aaacaGLOaGaayzkaaWaaWbaaSqabeaacaaIYa aaaOGaey4kaSIaaGOmaiaaikdacqaHdpWCdaahaaWcbeqaaiaaikda aaaaaa@4509@