Central bank transparency about model uncertainty and wage setters

Li Qin and Eleftherios Spyromitros
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Li Qin: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper addresses the issue of monetary policy transparency in a context of model uncertainty by adapting the robust control approach. We find that even if the desire of robustness induces an aggressive response of union and central bank, the central bank should reveal its preference about model robustness.

Date: 2008
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Published in Economics Bulletin, 2008, 5 (18), pp.1-5

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Journal Article: Central bank transparency about model uncertainty and wage setters (2006)
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