Revisiting the role of multiplicative uncertainty in a model without inflationary bias

摘要

Kobayashi [Kobayashi, T., 2003. Multiplicative uncertainty in a model without inflationary bias. Economics Letters 80, 317–321.] claims that an increase in multiplicative uncertainty on the transmission mechanism of monetary policy improves social welfare when central bank's preferences are highly uncertain.We show that this result applies only when society is strictly conservative.