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

This article considers the role of integrated assessment models (IAMs) in estimating the
social cost of carbon (SCC) for US regulatory purposes. Our perspective is rooted in the …

A constraint that actions can depend on observations only through a communication
channel with finite Shannon capacity is shown to be able to play a role very similar to that of …

The standard theory of decision making under uncertainty advises the decision maker to
form a statistical model linking outcomes to decisions and then to choose the optimal …

We investigate the implications of changes in the structure of the US economy for monetary
policy effectiveness. Estimating a vector autoregression over the pre-and post-1980 periods …

I consider the desirability of the observed tendency of central banks to adjust interest rates
only gradually in response to changes in economic conditions. I show, in the context of a …

This paper explores optimal policy design in an estimated model of three small open
economies: Australia, Canada and New Zealand. Within a class of generalized Taylor rules …

In recent years, many central banks have adopted inflation-targeting frameworks for the
conduct of monetary policy. These have proven in a number of countries to be effective …

We would like to thank Jean Boivin, Rick Mishkin, Ed Nelson, and Lars Svensson for helpful
discussions, Brad Strum for research assistance, and the National Science Foundation for …

We use a micro-founded macroeconometric modeling framework to investigate the design of
monetary policy when the central bank faces uncertainty about the true structure of the …