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Forward-looking behavior and optimal discretionary monetary policy

✍ Scribed by Kevin J. Lansing; Bharat Trehan


Book ID
117332602
Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
130 KB
Volume
81
Category
Article
ISSN
0165-1765

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✍ 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