... Then the first-order conditions for a minimum loss are: 2M A B 2G=−− (6) M. Carlberg, Monetary and Fiscal Strategies in the World Economy, 47DOI 10.1007/978 -3- 642-10476 -3_ 8, © Springer-Verlag ... on the rate of unemployment in America, 1B is some other factors bearing on the rate of inflation in Europe, and 2B is some other factors bearing on the rate of inflation in America. The ... M. Carlberg, Monetary and Fiscal Strategies in the World Economy, 25DOI 10.1007/978 -3- 642-10476 -3_ 5, © Springer-Verlag Berlin Heidelberg 2010 41Chapter 2 1. The Model An increase...