• Managing Uncertainty Through Robust-Satisficing Monetary Policy 

      Akram, Q. Farooq; Ben-Haim, Yakov; Eitrheim, Øyvind (Working Papers;10/2006, Working paper, 2006)
      We employ information-gap decision theory to derive a robust monetary policy response to Knightian parameter uncertainty. This approach provides a quantitative answer to the question: For a specified policy, how much can ...
    • Monetary Policy Under Uncertainty: Min-Max vs Robust-Satisficing Strategies 

      Ben-Haim, Yakov; Akram, Q. Farooq; Eitrheim, Øyvind (Working Papers;6/2007, Working paper, 2007)
      We study monetary policy under uncertainty. A policy which ameliorates a worst case may differ from a policy which maximizes robustness and satisfices the performance. The former strategy is min-maxing and the latter ...
    • Robust-Satisficing Monetary Policy Under Parameter Uncertainty 

      Akram, Q. Farooq; Ben-Haim, Yakov; Eitrheim, Øyvind (Working Papers;14/2007, Working paper, 2007)
      We employ the robust-satisficing approach to derive robust monetary policy when parameters of a macro model are uncertain. There is a trade-off between robustness of policies and their performance. Hence, under uncertainty, ...