-star disconnected from fundamentals. Monetary policy, through its influence on the private sector's beliefs, endogenously determines r …

information about productivity, regardless of which type of shock it arises from. Moreover, a decrease in economic uncertainty …

Using a new-Keynesian model with endogenous capital accumulation, I show that uncertainty about fiscal policy can cause … monetary authority is not constrained by the ZLB. I study uncertainty about the level of government spending and uncertainty … about tax rates on consumption, wages, capital income, and investment. In my model, uncertainty about government spending …

under parameter uncertainty. We find that Bayesian and robust central banks will respond more aggressively to financial …