We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …

losses are outweighed by short term gains from the learning phase. …

by the strength of a private learning channel from prices, arising from the multidimensional sources of asymmetric … information, in relation to the usual public learning channel. When the private learning channel is strong (weak) in relation to …

We study the properties of generalized stochastic gradient (GSG) learning in forward-looking models. We examine how the … conditions for stability of standard stochastic gradient (SG) learning both differ from and are related to E-stability, which … governs stability under least squares learning. SG algorithms are sensitive to units of measurement and we show that there is …

structure, forecasts, and adaptive learning rules affect the conditions for convergence of adaptive learning towards rational …

losses are outweighed by short term gains from the learning phase …

We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …

prevalent in early and late stages of a learning process, whereas reason governs decisions in intermediate stages. Examples …