Kurz, Mordecai; Motolese, Maurizio; Piccillo, Giulia; … - CESifo - 2015
We study the impact of diverse beliefs on conduct of monetary policy. We use a New Keynesian Model solved with a … volatility of variables to be non monotone in policy parameters. (iii) When beliefs are diverse a central bank must also consider … cross sectional standard deviation of individual beliefs. An increased belief diversity is found to make policy coordination …