relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent … Blanchard proposal to implement a higher inflation target in the light of parameter uncertainty. Furthermore, it provides …-orthogonal parameter uncertainty. -- inflation persistence ; parameter uncertainty ; inflation target ; dynamic programming …

Reserve has begun to contemplate an increase in the federal funds rate. There is however substantial uncertainty around these … projections. How should this uncertainty affect monetary policy? In many standard models uncertainty has no effect. In this paper … policy when there is uncertainty. In the current context this result implies that a delayed liftoff is optimal. We …

discuss the various sources of uncertainty that play an essential role in the formulation and conduct of monetary policy and … evaluate the degree of uncertainty faced by monetary policy makers. We also analyze the conditions that influence uncertainty … particular. Finally we assess the empirical impact of monetary policy transparency on the uncertainty about future monetary …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … and volatility become smaller as the inflation target becomes more credible, that is, the private agents' uncertainty …

This paper examines the empirical importance of parameter uncertainty for monetary policy-making in the United Kingdom … quadratic loss function for the policy-maker, an optimal interest rate rule is calculated first ignoring parameter uncertainty …, then assuming that the parameter uncertainty is given by the estimated standard errors on the VAR coefficients. These rules …

on the degree of preference uncertainty …

This paper focuses on optimal monetary policy in presence of uncertainty of the structural parameters that characterize …