Orphanides, Athanasios; Williams, John C. - In: Review of Economic Dynamics 8 (2005) 2, pp. 498-527
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 …
