be derived by quadratic approximation. This leaves uncertainty in the basic three-equation model. After adding exogenous … AR(1) processes, I examine the results by numerical simulation. First, I derive a reduced-form solution for the nominal …, impulse response functions show the adjustments over time after a cost shock. As a result, accounting for uncertainty can lead …

We examine whether the robustifying nature of Taylor rule cross-checking under model uncertainty carries over to the … case of parameter uncertainty. Adjusting monetary policy based on this kind of cross-checking can improve the outcome for …

greenhouse gas emission reduction in structural environmental-macroeconomic DSGE models. First, we analyze the uncertainty in …

In the New-Keynesian model, optimal interest rate policy under uncertainty is formulated without reference to monetary …

In the New-Keynesian model, optimal interest rate policy under uncertainty is formulated without reference to monetary … policy ; New-Keynesian model ; money ; quantity theory ; European Central Bank ; policy under uncertainty …

In the New-Keynesian model, optimal interest rate policy under uncertainty is formulated without reference to monetary … Policy ; New-Keynesian Model ; Money ; Quantity Theory ; European Central Bank ; Policy Under Uncertainty …

We study whether the source of uncertainty shocks matters for optimal monetary policy, focusing on productivity and … cost-push uncertainty shocks. Although both shocks deliver similar macroeconomic dynamics under an empirical Taylor rule …, they generate very different dynamics under optimal monetary policy. Following productivity uncertainty shocks, the optimal …

Bauer et al. (2022) derive market-based monetary policy uncertainty and uncover an 'FOMC uncertainty cycle …' characterized by a fall of uncertainty after FOMC announcements and its subsequent built-up. Then, the authors show that the … financial markets' response to monetary policy announcements depends on the level of short-rate uncertainty on the day before …