This paper studies optimal robust monetary policy when the central bank imperfectly observes potential output and has 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...

This paper revisits monetary-fiscal policy interactions when the policymaker has Knightian uncertainty about the exact position of the effective lower bound (ELB). We characterize optimal discretionary policy when a benevolent policymaker controls the nominal interest rate and the level of...