This article examines recent research on the influence of various forms of economic uncertainty on the performance of different classes of monetary policy rules: from simple rules to fully optimal monetary policy under commitment. The authors explain why uncertainty matters in the design of...

The recent financial crisis and global economic slowdown have renewed interest in monetary policy options when the policy interest rate is at or near zero. This article examines how different monetary policy frameworks might help to lower the risk and economic cost of such a scenario. The...