This paper explores the role that the imperfect knowledge of the structure of the economy plays in the uncertainty … the policymaker faces when setting the monetary policy and evaluating its effect on real economy. We find evidence of a …

This paper explores the role that the imperfect knowledge of the structure of the economy plays in the uncertainty … the policymaker faces when setting the monetary policy and evaluating its effect on real economy. We find evidence of a …

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 … and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, inflation …

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 … and destabilized the economy. Had monetary policy reacted less aggressively to perceived unemployment gaps, inflation …

This paper explores the role that the imperfect knowledge of the structure of the economy plays in the uncertainty … the policymaker faces when setting the monetary policy and evaluating its effect on real economy. We find evidence of a …