parameter combinations our results confirm the findings of Beetsma et al. (2001) that for symmetric inflation and output gap … central bank and the coalition of national governments is most intense under a symmetric inflation shocks when there is strong … conflict concerning the orientation of stabilisation policies. This conflict is less pronounced under an asymmetric inflation …

, contrary to theoretical predictions, the one-round ahead (publicly known) shock is significant, but future inflation is not …. Our findings cast light on price dynamics when subjects have limited computational capacities. -- Inflation Persistence …