Bullard, James B.; Evans, George W.; Honkapohja, Seppo - Federal Reserve Bank of St. Louis - 2004
monetary policy framework. Inclusion of judgement in forecasts can lead to self-fulfilling fluctuations, but without the … might avoid unintended outcomes by adjusting policy to minimize the risk of exuberance equilibria. …We study how the use of judgement or "add-factors" in macroeconomic forecasting may disturb the set of equilibrium …