We consider a heterogenous expectations model where some agents are adaptive learners while others are rational. We consider three optimal monetary policy rules when the central bank either does not influence expectations or does influence expectations of learners or does influence expectations...

The modelling of expectations and its degree of backward looking behaviour are issues of main concern in the inflation dynamics research agenda. One approach in the literature is to use expectations from surveys as an approximation to actual expectations. We estimate the Phillips curve allowing...