Tinsley, P.A.; Kozicki, Sharon - Society for Computational Economics - SCE - 2004
anchored, many monetary policy models assume: (1) the inflation target of moentary policy is constant; and, (2) the inflation … changes to the inflation target and transitory perturbations of the short-term real rate. The public sector cannot correctly … distinguish between these two shocks and, under incomplete learning, private perceptions of the inflation target will not equal …