model, while a representative household uses a set of alternative probability distributions governing the evolution of the …

environment. This paper proposes, from a central banker's point of view, a synthesis of the main sources of uncertainty as well as … uncertainty and the choice of the selected loss function, the recommendations for monetary policy can be noticeably different …

We argue that the uncertainty over the impact of macroprudential policy need not make a policymaker more cautious. Our … starting point is the classic result of Brainard (1967) which finds that uncertainty over the impact of a policy instrument … risk, potential asymmetries in policy objectives, the ability to learn from policy actions, and private sector uncertainty …

-known success-probability criterion adapted to settings characterized by model uncertainty. We apply this decision criterion to … takes explicit account of model uncertainty. To this end, the value function we propose is an analogue of the well … probability distributions constructed by Drouet et al. (2015) linking carbon budgets to future consumption. The main result that …

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 behavior of a central bank under strong (quot;Knightianquot;) uncertainty when the short run … (2002). By solving the robust control problem analytically we show why model uncertainty does not affect the optimal …

and uncertainty? We build a model where countries disagree on policy targets and how policies affect the economies, and … show that uncertainty not only determines the type of cooperative policy but also whether countries want to cooperate at … all. Countries facing larger model disagreement also need to face larger uncertainty with respect to policy spillovers to …