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 …

The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central … bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes … uncertainty is mitigated. As a consequence, monetary union enlargement may lead to a more aggressive fiscal stance in some member …