economy where (i) private agents have incomplete information and form their expectations using recursive learning algorithms … of stability of the equilibrium and speed of convergence of the learning process. In particular, while the publication of … stabilize expectations and to speed up the learning process the response of the policy instrument to inflation should be …

economy where: (i) private agents have incomplete information and form their expectations using recursive learning algorithms … this assumption.Results in terms of stability of the equilibrium and speed of convergence of the learning process crucially … inflation and output gap projections enlarges the set of interest rate rules associated with stable equilibria under learning …

We analyze the effects of social learning in a widely-studied monetary policy context. Social learning might be viewed … as more descriptive of actual learning behavior in complex market economies. Ideas about how best to forecast the economy … this more realistic learning dynamic. A key result from the literature in the version of the model we study is that the …

We study the impact of adaptive learning for the design of a robust monetary policy using a small open-economy New … with model misspecification. Learning induces an intertemporal trade-off for the central bank, i.e., stabilizing inflation … possibility to conduct robust monetary policy is limited in a small open economy under learning for any exchange rate pass …

Central bank communication plays an important role in shaping market participants' expectations. This paper studies a … shows that agents' learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce "learning equilibria" in which the economy …

Central bank communication plays an important role in shaping market participants’ expectations. This paper studies a … shows that agents’ learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce “learning equilibria” in which the economy …

distinguish between these two shocks and, under incomplete learning, private perceptions of the inflation target will not equal …

monetary policy rules. With adaptive learning, beliefs constitute an additional set of state variables, which may require more … learning methodology embodied in Bullard and Mitra (2002) and Bullard and Mitra (2007), beyond the New Keynesian modelling …