Robust Control and the Monetary Policy Delegation

International audienceThis paper adapts in a simple static context the Rogo§ís (1985) analysis of monetary policy delegation to a conservative central banker to the robustcontrol framework. In this framework, uncertainty means that policymakers are unsure about their model, in the sense that there is a group of approximatemodels that they also consider as possibly true, and their objective is to choose a rule that will work under a range of di§erent model speciÖcations. We Önd that robustness reveals the emergence of a precautionary behaviour in the case of unstructured model uncertainty, reducing thus governmentís willingness to delegate monetary policy to a conservative central banker