This paper sets out to investigate the role of additive uncertainty under plausible non-standard central bank loss functions over future inflation. Building on a substantial body of evidence in the economic psychology literature, this paper postulates (i) period-by-period loss functions that are...

Money and central banks -- How monetary policy works : the mainstream model -- Three questions on the mainstream model -- The zero lower bound problem -- Financial stability and the lender of last resort function of central banks -- Will paper currency disappear and will this be a problem? --...