Rules-Based Optimal Mitigation of Economic Uncertainty

A notable attribute of the empirical studies on monetary rules is that few published articles rely normative evaluation in eliminating unwanted economic uncertainty. To prevail over this shortcoming, paper introduces optimal mitigation uncertainty and determines its applicability through a sample 14 selected countries. Using combination theoretically derived with estimations leads to specific rules. The findings provide some policy implications; can characterise use interest rate exchange eliminate serve as guide adjustment process restore macroeconomic conditions equilibrium eventually promote best outcomes.