This paper analyses the impact of asymmetric preferences with respect to inflation and output by policymakers on … for low inflation. Using data for four G7 economies, the paper shows that, except for Germany, nonlinear and asymmetric … monetary authority develops a greater precautionary demand for output expansions than for low inflation. This may generate a …

Brazil arising from this policymaker's uncertainties about the effects of the output gap on inflation. Theoretically, we … follow Tillmann (2011) to obtain a nonlinear optimal monetary policy rule that is robust to uncertainty about the output-inflation … the Brazilian monetary policy during the inflation-targeting regime. The results indicate that: (i) the uncertainties …