policymakers’ beliefs about higher-order moments of economic distributions – specifically perceptions of uncertainty and skewness … unobservable decision-making features, we construct text-based proxies for policymakers’ uncertainty, sentiment, and policy stance … from the FOMC meeting transcripts over the 1987--2015 period. Heightened uncertainty generally amplifies the policymakers …

uncertainty about the model’s structural parameters. We consider a Bayesian policymaker who assesses the effectiveness of policy …

Knightian uncertainty about the intertemporal elasticity of substitution and the slope of the Phillips curve. The literature on … optimal robust monetary policy has focused on either imperfect observability of some variables or on parameter uncertainty. We … characterize robust monetary policy analytically under the two types of uncertainty and show that in general they call for a more …