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Model Uncertainty, Optimal Monetary Policy and the Preferences of the Fed

✍ Scribed by Efrem Castelnuovo; Paolo Surico


Book ID
110743800
Publisher
John Wiley and Sons
Year
2004
Tongue
English
Weight
224 KB
Volume
51
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