dc.contributor.author | Ben-Haim, Yakov | |
dc.contributor.author | Akram, Q. Farooq | |
dc.contributor.author | Eitrheim, Øyvind | |
dc.date.accessioned | 2018-05-16T07:19:01Z | |
dc.date.available | 2018-05-16T07:19:01Z | |
dc.date.issued | 2007 | |
dc.identifier.isbn | 978-82-7553-399-7 | |
dc.identifier.isbn | 978-82-7553-398-0 | |
dc.identifier.issn | 0801-2504 | |
dc.identifier.issn | 1502-8143 | |
dc.identifier.uri | http://hdl.handle.net/11250/2498269 | |
dc.description.abstract | 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 strategy is robust-satisficing. We show an “observational equivalence” between robust-satisficing and min-maxing. However, there remains a “behavioral difference” between robust-satisficing and min-maxing. Policy makers often wish to respect specified bounds on target variables. The robust-satisficing policy can be more (and is never less) robust, and hence more dependable, than the min-max policy. We illustrate this in an empirical example where monetary policy making amounts to selecting the coefficients of a Taylor-type interest rate rule, subject to uncertainty in the persistence of shocks to inflation. | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Norges Bank | nb_NO |
dc.relation.ispartofseries | Working Papers;6/2007 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | JEL: E52 | nb_NO |
dc.subject | JEL: E58 | nb_NO |
dc.subject | Knightian uncertainty | nb_NO |
dc.subject | robustness | nb_NO |
dc.subject | info-gap decision theory | nb_NO |
dc.subject | monetary policy | nb_NO |
dc.subject | min-max policy | nb_NO |
dc.subject | robust-satisficing policy | nb_NO |
dc.title | Monetary Policy Under Uncertainty: Min-Max vs Robust-Satisficing Strategies | nb_NO |
dc.type | Working paper | nb_NO |
dc.description.version | publishedVersion | nb_NO |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | nb_NO |
dc.source.pagenumber | 28 | nb_NO |