Uncertainty is a ubiquitous concern emphasized by policymakers. We study how uncertainty
affects decision-making by the Federal Open Market Committee (FOMC). We distinguish …

This paper studies the optimal long-run inflation rate (OIR) in a small New Keynesian model,
where the only policy instrument is a short-term nominal interest rate that may occasionally …

The pandemic crisis constitutes an unprecedented challenge for the European Union and
for the Euro Area. Indeed, the European institutional architecture can be viewed as being …

For each of three types of ambiguity, we compute a robust Ramsey plan and an associated
worst-case probability model. Ex post, ambiguity of type I implies endogenously distorted …

We study how a central bank in a small open economy should conduct monetary policy if it
fears that its model is misspecified. Using a new-Keynesian model of a small open economy …

We study the effects of model uncertainty in a simple New Keynesian model using robust
control techniques. Due to the simple model structure, we are able to find closed-form …

This work presents a novel strategy for efficiently extracting macromodels from multiphysics
microelectromechanical system (MEMS) devices with weak coupling. To validate the …

Abstract Giannoni and Woodford (2003a, 2003b) and Hansen and Sargent (2003, 2004)
have recently developed different notions of robust policy, and both approaches have been …

Written by Lars Peter Hansen (Nobel Laureate in Economics, 2013) and Thomas Sargent
(Nobel Laureate in Economics, 2011), Uncertainty within Economic Models includes articles …

Robust control allows policymakers to formulate policies that guard against model
misspecification. The principal tools used to solve robust control problems are state-space …