Our models are simple abstractions, and the notion of uncertainty that we build into them is usually of the benign, white-noise type that policymakers can generally ignore.
I would argue, rather, that the uncertainty that central bankers face is truly fundamental – Knightian in nature and scope – and we run the risk of making major policy errors if we simply assume that uncertainty away. This necessarily transforms monetary policy-making from something akin to reverse engineering into an exercise in risk management.