Search Results
Discussion Paper
On the rationality of discontinuous monetary policy
Working Paper
Some problems with identification in parametric models
Discussion Paper
Some partial equilibrium of tax reform on corporate policy
Working Paper
Robust monetary policy with misspecified models: does model uncertainty always call for attenuated policy?
This paper explores Knightian model uncertainty as a possible explanation of the considerable difference between estimated interest rate rules and optimal feedback descriptions of monetary policy. We focus on two types of uncertainty: (i) unstructured model uncertainty reflected in additive shock error processes that result from omitted-variable misspecifications, and (ii) structured model uncertainty, where one or more parameters are identified as the source of misspecification. For an estimated forward-looking model of the U.S. economy, we find that rules that are robust against ...
Discussion Paper
Optimal bands in short-run monetary policy
Discussion Paper
Forecasting money demand with econometric models
Discussion Paper
Further thoughts on testing for casuality with econometric models