and lagged output gaps are not robust. Some degree of robustness can be recovered by using rules without interest … effective strategy for improving the robustness of policy rules. JEL Classification: E12, E52, E61 …

Sargent (2003, 2007) assumes unstructured model uncertainty and uses a minimax robustness criterion to design monetary rules …. This contrasts with an older literature that structures uncertainty by seeking rules that are robust across competing views … instrument. Finally, again for both types of robustness exercise we explore the implications of policy design when the …

In this paper, we examine the performance and robustness of optimised interest-rate rules in four models of the euro …

strongly in its favor? Our answer features model uncertainty. Each period a central bank sets the systematic part of the … behavior induced by model uncertainty can explain why the central bank presided over the inflation of the 1970s even after the …

In this paper, we examine the cost of insurance against model uncertainty for the Euro area considering four …

estimated or calibrated for alternative identification approaches. These differences also translate into uncertainty about the …

rules that are robust with respect to model uncertainty facing both the policy-maker and private sector. We apply our … area and estimated measures of structured exogenous and parameter uncertainty for the exercise. We find that IFB rules with …

(“uncertainty”), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …

stock' model of optimal consumption in the presence of labor income uncertainty and credit constraints. Saving in the model … uncertainty. An estimated structural version of the model suggests that increased credit availability accounts for most of the … saving rate's long-term decline, while fluctuations in net wealth and uncertainty capture the bulk of the business …