TY  - JOUR
AU  - Feldstein,Martin
TI  - Monetary Policy in an Uncertain Environment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9969
PY  - 2003
Y2  - September 2003
UR  - http://www.nber.org/papers/w9969
L1  - http://www.nber.org/papers/w9969.pdf
N1  - Author contact info:
Martin S. Feldstein
President Emeritus
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138-5398
Tel: 617/868-3905
Fax: 617/868-7194
E-Mail: msfeldst@nber.org
AB  - This paper discusses the nature of the uncertainty faced by central banks and considers three approaches to dealing with uncertainty(1) formal optimization models and robust rules based on such models; (2) informal rules like the Taylor rule and inflation targeting; and (3) a case by case approach based on an informal Bayesian logic. The latter case requires considering the asymmetric nature of the risks that the central bank often faces.
ER  -