relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent … Blanchard proposal to implement a higher inflation target in the light of parameter uncertainty. Furthermore, it provides …-orthogonal parameter uncertainty. -- inflation persistence ; parameter uncertainty ; inflation target ; dynamic programming …

times. The extended path algorithm is a commonly used and fairly general method for solving dynamic nonlinear models with … rational expectations. This algorithm can be used for a wide range of cases, including for models with occasionally binding … computational improvements to the algorithm that speed up the calculations via vectorisations of the Jacobian matrix and residual …