incorporation of uncertainty into policy decision-making. The sort of post-crisis uncertainty that central banks are dealing with … this burden of coherence means that fundamental uncertainty must be incorporated explicitly into the policy formulation … management, one consequence of which is to inject a little more realism about uncertainty into the policy narrative, while …

.S. economy where the policymaker faces uncertainty about model parameters. Uncertainty about parameters describing preferences … and technology implies not only uncertainty about the dynamics of the economy. It also implies uncertainty about the model … characteristics and performance of alternative monetary policy rules given the estimated uncertainty regarding parameter estimates. We …

outline a novel model that considers the non-linear relationship between inattentiveness and aggregate uncertainty, which … crucially distinguishes between macro-economic and data ( measurement error) uncertainty. The empirical analysis uses the Survey …

Central banks face considerable uncertainty when conducting monetary policy. Some of the reasons for this include … policy is affected by uncertainty from various sources, including lack of or imperfect observation of economic variables … the key sources of this uncertainty and their implications for the conduct of monetary policy. First, we discuss evidence …

how different sources of uncertainty factor into monetary policy communications. To help markets and others understand its … are being considered in policy formulation. Discussion of uncertainty becomes particularly important when a large shock …

Hansen and Sargent (2004) model uncertainty. The paper finds the price level targeting rule to be robust; its performance … deteriorates slower than the inflation targeting rule and the absolute decline in performance is small in magnitude. -- Uncertainty …

This paper analyzes the role of uncertainty in a multi-sector housing model with financial frictions. We include time … varying uncertainty (i.e. risk shocks) in the technology shocks that affect housing production. The analysis demonstrates that … countercyclical behavior of risk premia on loans to the housing sector. -- agency costs ; credit channel ; time-varying uncertainty …