translate English to French: The author finds that, if the central bank cares strongly enough about stabilizing the output gap, this aversion generates significant declines in the coefficients of the Taylor rule, even if the bank's loss function assigns little weight to reducing interest rate variability.
Yt+1 = (AY Y + AY Z N ∗ )Yt + C C.2.3 Loss function Using the equations above, I solve for inﬂation and output to obtain Zt = (yt , xt ) = N ∗ Yt . Since it = ψy yt + ψx xt , I can substitute out (yt , xt ) = N ∗ Yt to obtain it in terms of the predetermined ¯ variables only.