Monetary Policy under Uncertainty

Oliver Sauter analyzes three aspects of monetary policy under uncertainty. First he shows that the terms risk and uncertainty are often wrongly used as synonyms despite their different meanings. The second aspect is the proper examination and incorporation of uncertainty into a monetary policy framework. The author undertakes systematization with a closer look at each identified form of uncertainty. Thirdly, he focuses on the quantification of uncertainty from two different perspectives, either from a market perspective or from a central bank perspective.

Historical Origins of Uncertainty in Economic Theory. - Theoretical Foundations of Monetary Policy under Uncertainty. - Empirical Investigations of Market Uncertainty. - Communicated Uncertainty of the European Central Bank.