Ben-Haim, Yakov, Demertzis, Maria, van den End, Jan Willem, (2017), “Fundamental uncertainty and unconventional monetary policy: an info-gap approach”, Bruegel, 28 February
This paper applies the info-gap approach to the unconventional monetary policy of the Eurosystem and so takes into account the fundamental uncertainty on inflation shocks and the transmission mechanism. The outcomes show that a more demanding monetary strategy, in terms of lower tolerance for output and inflation gaps, entails less robustness against uncertainty, particularly if financial variables are taken into account.
Relevant Posts
- Bletzinger, Tilman, Lalik, Magdlena, (2017), “The impact of constrained monetary policy on the fiscal multipliers on output and inflation”, ECB Working Paper Series No 2019, February
- Farmer, Roger, Zabczyk, Pawel, (2016), “Why unconventional monetary policy works in theory”, VoxEu, 26 October