Financial stability under model uncertainty

C-Tier
Journal: Economics Letters
Year: 2018
Volume: 173
Issue: C
Pages: 65-68

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies how asset price model misspecification affects the conduct of monetary policy under commitment in a New Keynesian model using robust control techniques. We find that monetary policy reacts aggressively to both asset price and inflation shocks to guard herself against worst-case outcome.

Technical Details

RePEc Handle
repec:eee:ecolet:v:173:y:2018:i:c:p:65-68
Journal Field
General
Author Count
2
Added to Database
2026-01-25