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Journal articles (2012), Journal of Macroeconomics, 34 (4), pp. 1020-1033

On Model Ambiguity and Money Neutrality


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. Link to the article

LIOUI, A. and PONCET, P. (2012). On Model Ambiguity and Money Neutrality. Journal of Macroeconomics, 34(4), pp. 1020-1033.

Keywords : #Équilibre-monétaire-dynamique, #Modèle-mal-spécifié, #Neutralité-monétaire, #Préférence-pour-la-robustesse, #Processus-stochastiques-de-croissance-du-capital, #Processus-stochastiques-d'émission-monétaire