precautionary saving is strong enough, a rise in uncertainty leads to i) a drop in inflation; ii) amplified negative responses of …

of the responsiveness of price inflation to that slack. Using stochastic simulations of a small-scale version of the … setting the policy rate, and substitute toward a more forceful response to inflation, is overstated. We find that a notable … response to the unemployment gap is typically beneficial, even if that gap is mismeasured. Even when the dynamics of inflation …

indicate that supplementing the inflation target with a tolerance interval may be useful to enhance central bank credibility …

and leads to higher economic activity and inflation. Our results suggest that forward guidance about future monetary …

This paper studies optimal discretionary policy with parameter uncertainty about inflation inertia. Optimal policy … in the presence of uncertainty about inflation inertia, depending on the form of the central bank’s objective function …. Moreover, in the cases where optimal policy is not certainty equivalent, we find that inflation returns slightly more gradually …