We develop an estimated model of the U.S. economy in which agents form expectations by continually updating their … beliefs regarding the behavior of the economy and monetary policy. We explore the effects of policymakers' misperceptions of … expectations and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, in …

This paper investigates the role that imperfect knowledge about the structure of the economy plays in the formation of … economy based on incoming data. The process of perpetual learning introduces an additional layer of dynamic interaction …

This paper investigates the role that imperfect knowledge about the structure of the economy plays in the formation of … economy based on incoming data. The process of perpetual learning introduces an additional layer of dynamic interaction …

We develop an estimated model of the U.S. economy in which agents form expectations by continually updating their … beliefs regarding the behavior of the economy and monetary policy. We explore the effects of policymakers' misperceptions of … expectations and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, in …