Robust European monetary policy rules
AbstractThis note applies H∞ methods to an estimated hybrid monetary policy model and derives standard and robust optimal interest rate rules. We find that the 'robust' central banker responds more aggressively than it does without concerns for robustness and that the responses of the state variables in this case are not necessarily always stronger than the standard ones.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 10 (2003)
Issue (Month): 14 ()
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