Revisiting the role of multiplicative uncertainty in a model without inflationary bias

Giuseppe Ciccarone and Enrico Marchetti

Economics Letters, 2009, vol. 104, issue 1, 37-39

Abstract: Kobayashi [Kobayashi, T., 2003. Multiplicative uncertainty in a model without inflationary bias. Economics Letters 80, 317-321.] claims that an increase in multiplicative uncertainty on the transmission mechanism of monetary policy improves social welfare when central bank's preferences are highly uncertain. We show that this result applies only when society is strictly conservative.

Keywords: Brainard; conservatism; Uncertain; preferences; Monetary; policy (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (9)

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Working Paper: Revisiting the role of multiplicative uncertainty in a model without inflationary bias (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:104:y:2009:i:1:p:37-39

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