Year
2012
Authors
PONCET Patrice, LIOUI A.
Abstract
We solve for the equilibrium of a stochastic neo-classical continuous time model without and with money under model ambiguity. We show in particular that preference for model robustness affects all the real economic variables, the expected inflation rate and the nominal interest rate.
LIOUI, A. et PONCET, P. (2012). On Model Ambiguity and Money Neutrality. Journal of Macroeconomics, 34(4), pp. 1020-1033.