Paper: monetary policy rules with uncertainty

What happens to Taylor rules when uncertainty in the economy increases? A recent paper by Gabriel Srour of the Bank of Canada addresses this question and analyses how the rule changes when uncertainty and time lags increase.

Some Notes on Monetary Policy Rules with Uncertainty

by Gabriel Srour

Abstract: The author explores the role that Taylor-type rules can play in

monetary policy, given the degree of uncertainty in the economy. The

optimal rule is derived from a simple infinite-horizon model of the

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