Article ID Journal Published Year Pages File Type
967201 Journal of Monetary Economics 2012 20 Pages PDF
Abstract
► We determine robustly optimal monetary policy in a New Keynesian model. ► The policy is robust to deviations of private sector expectations from “rational expectations”. ► Robustness concerns require greater resistance to surprise increases in inflation.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Robustly optimal monetary policy in a microfounded New Keynesian model
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