This paper explores robust optimal targeting rules in a standard forward looking model when i) policy maker has doubts about the parameters while private agents know the model and ii) policy maker and the private sector share the same doubts. It is shown that, while the robust optimal policy...

Within a simple New Keynesian model emphasizing forward-looking behavior of private agents, I evaluate optimal nominal income growth targeting versus optimal inflation targeting. When the economy under consideration is mainly subject to shocks that do not involve monetary policy trade-offs for...