Publicaciones - Serie Banca Central Volumen 13 - Portal Biblioteca

Series on Central Banking 13: Monetary Policy under Uncertainty and Learning

Series on Central Banking 13: Monetary Policy under Uncertainty and Learning

Huge swings in oil, food, and other commodity prices and the global financial crisis are at the core of current monetary policy discussion. The latter events are vivid reminders of how uncertainty, imperfect knowledge, and the need to learn affect macroeconomic behavior and the conduct of monetary policy. Central bank and academic economists conducting research on the design of monetary policy have made significant advances in recent years. However, ongoing limitations of economic theory and data, structural changes in the economy, the inherent unobservability of key macro variables, and disagreements about the right model of the transmission of monetary policy imply that central bankers operate in an environment of both conventional and Knightian uncertainty. Hence economists and policymakers are engaged in continuous learning about the economy. At the same time, the public forms its expectations based on its evolving understanding of the economy and the policymakers' behavior. In this volume, leading international scholars address many of the key issues relevant to central bankers taking decisions under conditions of uncertainty and learning. The 14 essays in this volume offer both theoretical insights and international empirical results on the conduct of monetary policy under uncertainty and learning. The volume also addresses key issues on monetary policy conduct and results in Chile.

Language: English

Edited by: Klaus Schmidt-Hebbel y Carl E. Walsh

Published: June 2010

$15.000

Available for free in digital format in the Digital Repository and Institutional Website

Work belonging to the Collection of Paintings of the Central Bank of Chile: "Vista de la Ciudad" by Pablo Burchard Aguayo (Oil on canvas, 48,3 x 59,5 cm.)