Uncertainty-Proof Monetary Policy Boosts Iran's Economy Amid Cost-Push Shocks
The study looked at how to make good monetary policies when there's uncertainty in the economy, like a sudden increase in costs. They used different equations to figure out the best way to adjust policies. They found that when inflation rates from the past are considered, the policies become less aggressive. But when the importance of inflation in decision-making goes up, the policies are still more aggressive than usual. So, even with uncertainty, it's better to have strong monetary policies to keep the economy stable.