Abstract
The pandemic exposes policymakers to fundamental uncertainties about future economic scenarios. While policymakers have to act forcefully to mitigate the impact on the economy, these conditions call for policy strategies that are also robust to uncertainty. This article compares two concepts of robust strategies: robust control and robust satisficing. It argues that a robust satisficing strategy is preferred and shows that the crisis responses of governments and central banks in Europe share features of robust satisficing in several dimensions.
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Jan Willem Van den End, De Nederlandsche Bank, Amsterdam; and Vrije Universiteit Amsterdam, Netherlands.
Yakov Ben-Haim, Technion — Israel Institute of Technology, Haifa, Israel.
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Open Access: This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/).
Open Access funding provided by ZBW — Leibniz Information Centre for Economics.
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Van den End, J.W., Ben-Haim, Y. Robust Policy in Times of Pandemic. Intereconomics 56, 108–112 (2021). https://doi.org/10.1007/s10272-021-0961-1
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DOI: https://doi.org/10.1007/s10272-021-0961-1