Monetary policy in contexts of uncertainty, regime change and pronounced volatility

Working papers | 2007 | N 25

Abstract

The purpose of this work is to study the formulation of monetary policy under conditions of uncertainty. Economic policy usually faces numerous risks and uncertainties, basically as a product of the changing nature of the signals coming from the environment, the constant transformations experienced by the structure of the economy, the interaction of the different aggregate variables, as well as as well as by the mutations that have occurred in the behavior of economic agents and their reactions to their own policy decisions.