active learning possibilities has e®ects on the optimal interest rate rule followed by the central bank.For a wide range of …

In this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework.Learning … Evans and Honkapohja (2001), the learning scheme we investigate is that of least-squares learning (recursive OLS) using the … Kalman filter.We find that optimal monetary policy under learning is a policy that separates estimation and control …