01749cas a2200241 a 4500 AALejournalIMF000566 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451921717 1018-5941 BD-DhAAL BD-DhAAL Tambakis, Demosthenes. Monetary Policy with a Convex Phillips Curve and Asymmetric Loss / Demosthenes Tambakis. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Recent theoretical and empirical work has cast doubt on the hypotheses of a linear Phillips curve and a symmetric quadratic loss function underlying traditional thinking on monetary policy. This paper analyzes the Barro-Gordon optimal monetary policy problem under alternative loss functions-including an asymmetric loss function corresponding to the 'opportunistic approach' to disinflation-when the Phillips curve is convex. Numerical simulations are used to compare the implications of the alternative loss functions for equilibrium levels of inflation and unemployment. For parameter estimates relevant to the United States, the symmetric loss function dominates the asymmetric alternative. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/021 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/021/001.1998.issue-021-en.xml IMF e-Library