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DEALING WITH UNCERTAINTY: ROBUST RULES IN MONETARY POLICY

✍ Scribed by Maria Demertzis; Alexander F. Tieman


Book ID
111010231
Publisher
John Wiley and Sons
Year
2007
Tongue
English
Weight
142 KB
Volume
54
Category
Article
ISSN
0036-9292

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Robust optimal monetary policy in a forw
✍ Marc P. Giannoni πŸ“‚ Article πŸ“… 2007 πŸ› John Wiley and Sons 🌐 English βš– 315 KB

## Abstract This paper characterizes a robust optimal policy rule in a simple forward‐looking model, when the policymaker faces uncertainty about model parameters and shock processes. We show that the robust optimal policy rule is likely to involve a stronger response of the interest rate to fluctu