Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/308813 
Erscheinungsjahr: 
2025
Schriftenreihe/Nr.: 
Bank of Finland Research Discussion Papers No. 2/2025
Verlag: 
Bank of Finland, Helsinki
Zusammenfassung: 
We offer a contribution to the analysis of optimal monetary policy. The standard approach to determine what policy rule a central bank should follow is to take a single structural model and minimize the unconditional volatilities of inflation and real activity. In this paper, we propose monetary policy rules that perform robustly across a broad range of structural models, focusing on minimizing volatility at the frequencies most relevant for policymakers' stabilization goals. Our findings indicate that robust rules, which account for model uncertainty, advocate significantly less aggressive policy responses. Moreover, incorporating frequency-specific stabilization preferences further moderates the optimal policy actions. Ignoring model uncertainty imposes significant costs, while the cost of insuring against this uncertainty is relatively low. This cost-benefit analysis strongly supports adopting a robust-model approach to monetary policy.
Schlagwörter: 
monetary policy rules
policy evaluation
model comparison
model uncertainty
frequency domain
design limits
DSGE models
JEL: 
C49
E32
E37
E52
E58
Persistent Identifier der Erstveröffentlichung: 
Dokumentart: 
Working Paper

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