connection between heightened uncertainty, higher core inflation, and increased profits. …This paper aims to explore the impact of rising uncertainty on prices using micro-data on prices and multi-sector new … Keynesian models. We identify diverse price responses to increasing macroeconomic uncertainty: goods with relatively flexible …

superior when there is no model uncertainty. When there is uncertainty about the degree of inflation persistence, the inflation … euro area economy. In particular, we examine the properties of rules responding to inflation, the price level, or a … if the true degree of inflation persistence turns out to be less than policymakers' estimate …

The argument that policy risk, i.e., uncertainty about monetary and fiscal policy, has been holding back the economic … business cycle fluctuations by using an estimated New Keynesian model featuring policy risk as well as uncertainty about … technology. We directly measure uncertainty from aggregate time series and find considerable evidence of time-varying policy risk …

Central banks face uncertainty about the true location of the effective lower bound (ELB) on nominal interest rates. We …