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Uncertainty and monetary policy

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  • Richard Dennis

Abstract

Since uncertainty is such an important issue for policymakers it should come as no surprise that economists have made a study of its various guises and developed formal techniques to help understand and mitigate its effects. In this Letter I discuss, in broad-brush terms, some of these techniques and their implications for the conduct of monetary policy.

Suggested Citation

  • Richard Dennis, 2005. "Uncertainty and monetary policy," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue nov30.
    • Handle: RePEc:fip:fedfel:y:2005:i:nov30:n:2005-33
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    References listed on IDEAS

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    1. Alan Greenspan, 1996. "Opening remarks," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 1-5.
    2. Athanasios Orphanides, 2001. "Monetary Policy Rules Based on Real-Time Data," American Economic Review, American Economic Association, vol. 91(4), pages 964-985, September.
    3. Aoki, Kosuke, 2003. "On the optimal monetary policy response to noisy indicators," Journal of Monetary Economics, Elsevier, vol. 50(3), pages 501-523, April.
    4. Ulf Söderström, 2002. "Monetary Policy with Uncertain Parameters," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(1), pages 125-145, March.
    5. Mccallum, Bennet T., 1988. "Robustness properties of a rule for monetary policy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 29(1), pages 173-203, January.
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    Cited by:

    1. Di Bartolomeo, Giovanni & Giuli, Francesco, 2011. "Fiscal and monetary interaction under monetary policy uncertainty," European Journal of Political Economy, Elsevier, vol. 27(2), pages 369-375, June.
    2. Sanvi Avouyi-Dovi & Jean-Guillaume Sahuc, 2009. "Comportement du banquier central en environnement incertain," Revue d'économie politique, Dalloz, vol. 119(1), pages 119-142.
    3. Gavin, William T. & Keen, Benjamin D. & Pakko, Michael R., 2009. "Inflation Risk And Optimal Monetary Policy," Macroeconomic Dynamics, Cambridge University Press, vol. 13(S1), pages 58-75, May.
    4. Christoph E. Boehm & Christopher L. House, 2014. "Optimal Taylor Rules in New Keynesian Models," NBER Working Papers 20237, National Bureau of Economic Research, Inc.

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    Keywords

    Monetary policy; Uncertainty;

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