Diron, Marie (contributor); Mojon, Benoît (contributor) - 2005
”, American Economic Review, available as FEDS Working Paper No. 2003-
46.
Sargent (1993), Bounded rationality in macroeconomics … inflation expectations.
One reason why inflation expectations are important is that economic agents who adjust
prices and … contracts”. The credibility of the central bank’s target
implies that economic agents “trust” the central bank and expect that …