Question: [20 points] Set up the optimization problem for a central bank whose preferences are represented by the following intertemporal loss function: L = L(y,

[20 points] Set up the optimization problem for a central bank whose preferences are represented by the following intertempor

[20 points] Set up the optimization problem for a central bank whose preferences are represented by the following intertemporal loss function: L = L(y, ) + BL (y+1, co = [B*L (y+k, t+k), k=0 +1) + BL (y+2, T+2)+... 0

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