loss function

Publication date: 2 Aug 2017 | Publication type: National Institute Economic Review | Theme: Macroeconomics | External authors: Barwell, R | JEL classification: D78, E58, E61, G18 | Journal: National Institute Economic Review Issue 241 | Publisher: Sage Publications, London
Economists understand that a fit for purpose policy regime requires a reliable general equilibrium model of the system in question and a well specified description of the objectives that the policymaker is trying to pursue. The current financial stability regime has neither and without these...