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Optimal Monetary Policy with an Uncertain Cost Channel
parameter uncertainty min–max cost channel optimal monetary policy Taylor rule.
2011/8/21
The cost channel of monetary transmission describes a supply-side effect of interest rates on firms' costs. Previous research has found this effect to vary, both over time and across countries. Moreov...
Uninsured Countercyclical Risk: An Aggregation Result and Application to Optimal Monetary Policy
uninsured risk sticky prices optimal monetary policy
2011/8/21
We consider an incomplete-markets economy with capital accumulation and endogenous labor supply. Individuals face countercyclical idiosyncratic labor and asset risk. We derive conditions under which t...