, learning from the experience of the 1970s, eschewed activist policies in favor of policies that concentrated on the achievement …

optimise under limited-information model-consistent learning, where each agent knows the parameters related to his …/her optimization problem. Under this learning approach the effect of a monetary policy shock on output and inflation is more muted but … learning version, we .find stronger expansionary effects of an increase in government expenditure during periods of downturns …

certain features of monetary policy rules that facilitate learning. However a treatment of policy design for learnability in … worlds where agents have potentially misspecified their learning models has yet to surface. This paper provides such a … understanding of the workings of the economy and that their learning the reduced forms of the economy is subject to potentially …

time separable preferences strongly improves empirical performance. Learning causes momentum and mean reversion of returns … restrict consideration to learning schemes that imply only small deviations from full rationality. The findings are robust to … the particular learning rule used and the value chosen for the single free parameter introduced by learning, provided …

: rational expectations and learning. We show that in this environment the ability to stabilize the real side of the economy is … private learning and misperceptions of natural rates call for greater policy inertia, a more aggressive response to inflation … economy. We show that such policies are quite robust to potential misspecification of private sector learning and the …

realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … differences in the adjustment path to the shocks to the economy when agent form expectations using our learning approach compared …