Orphanides, Athanasios; Williams, John C. - Central Bank of Cyprus - 2008
. We assume that agents have imperfect knowledge about the precise structure of the economy and form expectations using a … knowledge about the structure of the economy can perform poorly when knowledge is imperfect. These problems are exacerbated by … control approach can be made more robust to the presence of imperfect knowledge by deemphasizing the stabilization of real …