We survey literature on ambiguity with an emphasis on recent applications in
macroeconomics and finance. Like risk, ambiguity leads to cautious behavior and …

UK households that wish for lower inflation and lower nominal interest rates have higher
expected inflation. We interpret the evidence through the lens of a New Keynesian model …

Over the past few decades, worldwide real interest rates have trended downward. The real
interest rate describes the terms of trade between risk-tolerant and risk-averse investors …

We study the effects of monetary announcements when agents face Knightian uncertainty
about the commitment capacity of the monetary authority. Households are ambiguity averse …

Over the past few decades, worldwide real interest rates have trended downward. The real
interest rate describes the terms of trade between risk-tolerant and risk-averse investors …

Allowing for ambiguity about the behavior of the policymaker in a simple New-Keynesian
model gives rise to wedges between long-run inflation expectations, trend inflation, and the …

This article studies the impact of fiscal uncertainty shocks. In micro data, noncapital holders
reduce consumption persistently in response to an increase in fiscal uncertainty whereas …

This paper studies a labor search model with agents who are averse to ambiguity (Knightian
uncertainty). Shocks to confidence about future productivity are modeled as changes in …

La gran diversidad de acepciones que tiene el término economía neoclásica ha generado
gran confusión entre los economistas y entre los estudiantes de economía. Dadas las …

Abstract Using the Bank of England Inflation Attitudes Survey we find that households with
preferences for higher inflation and higher interest rates have lower expected inflation. The …