So far the literature on robust monetary policy has used, without exception, very\u00a0simplified economic models, and with only one exception, assuming closed economy.
\nThis paper evaluates topics that are in the research agenda in a more complete and\u00a0complex set of (open economy) economic models applying the Hansen-Sargent robust\u00a0control approach. In particular, we are interested in answering the following questions: is\u00a0the optimal robust monetary policy more aggressive than the standard optimal rational\u00a0expectation (RE) monetary policy? Are the variances of output and inflation magnified\u00a0under optimal robust monetary policy? And, more generally, does the introduction of\u00a0optimal robust monetary policy alter some general conclusions that are established based\u00a0on the standard RE optimal monetary policy?
\nIn the context of our reference model, we found that the answer to the first two questions\u00a0is: not necessarily; and to the third one is yes. The answer to the first two questions\u00a0contradict some previous findings and suggests an obvious conclusion: we cannot\u00a0generalize conclusions about robust monetary policy using particular models, or in other\u00a0words, most of the conclusions arrived in this paper as well as in many others (that pretend\u00a0to be general) are model specific.
\nKeywords: Hansen-Sargent robust control approach, monetary policy, small open\u00a0economy, simulation.
\nJEL classification codes: F41, E52, C61.<\/p>\n