Ravenna, Federico; Seppala, Juha - Society for Computational Economics - SCE - 2006
hypothesis. We show that a New Keynesian model with habit-persistent preferences and a monetary policy feedback rule produces pro … of expectations hypothesis. Moreover, unlike Buraschi and Jiltsov (2005), we identify the systematic monetary policy, not … monetary policy shocks, as the key factor behind rejections of expectations hypothesis. …