about the true structure of the economy. Private agents rely on an adaptive learning technology to form expectations and … learning and misperceptions of natural rates call for more aggressive responses to inflation that would be optimal under … potential misspecification of private sector learning and the magnitude of variation in natural rates. …

I introduce a method to transform a T-map when agents form expectations using a misspecified learning mechanism … "Restricted Perceptions Equilibria" (RPE) of such a model are learnable under adaptive learning. I present the New Keynesian … inertia where determinacy only changes with inertia if the REE and RPE are not stable under learning. Under restricted …

of the structure of the economy is imperfect and an adaptive learning technology is available to the policymaker and … learning to form expectations. We show that policies that are efficient under rational expectations are no longer efficient …

characteristics of inflation targeting: transparency, commitment to maintaining price stability, and close monitoring of inflation …

A manifestation of the Federal Reserve Board's increased transparency has been Chairman Greenspan's method of …