The amplification of the New Keynesian models and robust optimal monetary policy
This paper analyzes whether and how model uncertainty affects the amplification mechanism of the New Keynesian models in a simple min-max framework where the central bank plays a zero-sum game versus a hypothetical, evil agent. A first finding on a benchmark model with staggered price setting is tha...
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| Format: | Article |
| Language: | English |
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AIMS Press
2020-03-01
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| Series: | Quantitative Finance and Economics |
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| Online Access: | https://www.aimspress.com/article/10.3934/QFE.2020003/fulltext.html |