We study learning in perfect competition. A representative price-taking firm sells a good whose quality is unknown to … the price, which, in turn, affects the competitive equilibrium through the learning process of the uninformed buyers. …

policymakers' preferences, and rely on a perpetual learning technology to form expectations. We find that with learning … from those implied by rational expectations, even at long horizons. The presence of learning increases the sensitivity of … the policy maker. In contrast, under learning, private inflation expectations follow a time-varying process and provide …