TY  - UNPD
A1  - Dück, Alexander
A1  - Verona, Fabio
T1  - Robust frequency-based monetary policy rules
T2  - Working paper series / Institute for Monetary and Financial Stability ; 180
N2  - Optimal monetary policy studies typically rely on a single structural model and identification of model-specific rules that minimize the unconditional volatilities of inflation and real activity. In their proposed approach, the authors take a large set of structural models and look for the model-robust rules that minimize the volatilities at those frequencies that policymakers are most interested in stabilizing. Compared to the status quo approach, their results suggest that policymakers should be more restrained in their inflation responses when their aim is to stabilize inflation and output growth at specific frequencies. Additional caution is called for due to model uncertainty.
T3  - Working paper series / Institute for Monetary and Financial Stability - 180 
KW  - monetary policy rules
KW  - policy evaluation
KW  - model comparison
KW  - model uncertainty
KW  - frequency domain
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/69195
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-691951
UR  - https://www.imfs-frankfurt.de/de/forschung/imfs-working-papers/details/mm_publication/detail/publication/robust-frequency-based-monetary-policy-rules.html
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -