The objective of this research is to test the hypothesis that pricing conduct in SouthAfrica, revealed by studies of pricing microdata, can be shown to have an impact on themodeling and conduct of monetary policy. In order to discern stylised facts about pricingconduct in South Africa, use is...

In this paper we propose a novel methodology to analyze optimal policies under model uncertainty in micro-founded macroeconomic models. As an application we assess the relevant sources of uncertainty for the optimal conduct of monetary policy within (parameter uncertainty) and across models...

Policy analysis with potentially misspecified dynamic stochastic general equilibrium (DSGE) models faces two challenges: estimation of parameters that are relevant for policy trade-offs and treatment of estimated deviations from the cross-equation restrictions. This paper develops and explores...