Bayesian and Adaptive Optimal Policy under Model Uncertainty
---- Acknowledgements ----
The authors thank James Bullard, Martin Ellison, Alexei Onatski, Tamas Papp, Rujikorn Pavasuthipaisit, Eric Schaling, Eric Swanson, Rick van der Ploeg, members of the Princeton Macro Lunch Workshop, and participants in the following conferences: Monetary Policy and Uncertainty in Oslo, June 2006, Macroeconomic Policy Design for Monetary Union in Amsterdam, June 2006, and the International Research Forum on Monetary Policy in Washington, DC, December 2006, for helpful comments and discussions. The views expressed in this paper are solely the responsibility of the authors and should not to be interpreted as reflecting the views of any other member of the Executive Board of Sveriges Riksbank. Research support from the National Science Foundation is gratefully acknowledged. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.