Probing Potential Output: Monetary Policy, Credibility, and Optimal Learning under Uncertainty

James Yetman
The effective conduct of monetary policy is complicated by uncertainty about the level of potential output, and thus about the size of the monetary policy response that would be sufficient to achieve the targeted inflation rate. One possible response to such uncertainty is for the monetary authority to "probe," interpreted here as actively using its policy response to learn about the level of potential output. Monetary authorities have put significant emphasis in recent years on...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.