Against this background, it comes as no surprise that a monetary policy approach should be as robust as possible against different forms of data and model uncertainties. In the past few years, a number of simulation studies have been carried out to assess which monetary policy approach achieves good results under various assumptions about the transmission process. These studies take into account model uncertainty.
However, they largely disregard the problem of data uncertainty. Consequently, their value for practical monetary policy is rather limited. 2  BIS Review 33/2004  I think, the search for a robust strategy in monetary policy could be broadened to include the kind of measurement problems that we will discuss here at this conference.