As far as recent developments in economic theory are concerned, "Behavioral Economics" constitutes one of the most promising frontiers in the last ten years, as the Nobel Prize for Economics recently won by the social psychologist Daniel Kahneman and the prestigious John Bates Clark Medal...

The present paper evaluates Taylor-type monetary rules from the perspective of which rules delivers determinacy and learnability of a rational expectations equilibrium. The model is fully microfounded. The closed form solution is explicitly derived. The novelty of the approach taken here...