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Robust control allows policymakers to formulate policies that guard against model misspecification. The principal tools used to solve robust control problems are state-space methods (see Hansen and Sargent 2006 and Giordani and Soderlind 2004). In this paper we show that the structural-form...
Persistent link: https://www.econbiz.de/10005361507
-structural, small-open-economy model of the U.K. Compared to the closed economy, the presence of an exchange rate channel for monetary …
Persistent link: https://www.econbiz.de/10005712203