Abstract: This paper presents a theoretical analysis of the simulated impact of uncertainty in a New Keynesian model …. In order to incorporate uncertainty, the basic three-equation framework is modified by higher-order approximation … shock, I find interest rates in the version with uncertainty to be lower in contrast to the case under certainty.  …

This study attempts to identify uncertainty in the long-term rate of interest based on the controversial interest rate … macroeconomic variables without interest uncertainty are thus seriously incomplete. …

This study attempts to identify uncertainty in the long-term rate of interest based on the controversial interest rate … macroeconomic variables without interest uncertainty are thus seriously incomplete. …

become pessimistic about future monetary policy, the disanchoring of inflation expectations occurs, and uncertainty rises …

become pessimistic about future monetary policy, the disanchoring of inflation expectations occurs, and uncertainty rises …

become pessimistic about future monetary policy, the disanchoring of inflation expectations occurs, and uncertainty rises …

stabilization and agents face uncertainty about the nature of these deviations. When observing a deviation, agents conduct Bayesian … prompt return to the active regime, macroeconomic uncertainty is low, welfare is high. However, if a deviation persists …, agents’ beliefs start drifting, uncertainty accelerates, and welfare declines. If the duration of the deviations is announced …

process based upon either a robust control or a Bayesian (à la Brainard) approach towards parameter uncertainty. We use a … relative performances with respect to the behavior of the output gap and the in.ation rate volatilities and compare with the no-uncertainty … uncertainty and its taking into account via the robust control approach or the Bayesian method may induce to this trade-o¤. The …

optimally estimated. Third, the implications of potential output uncertainty for the optimal delegation to an independent …