In this study, we investigate how central bank transparency about views on future productivity growth influences social … interest rate. Under this setup, we show that central bank transparency does not necessarily improve social welfare. It can …

This study examines whether central bank transparency about views of future productivity growth contributes to … transparency does not necessarily stabilize the variations of the output gap and inflation rate. The central bank should respond … strongly to the inflation rate, if the impact of transparency is uncertain. …

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 …

We characterize optimal monetary policy when agents are learning about endogenous asset prices. Boundedly rational …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably far-sighted. But, under Euler-equation learning, the model can fit the data with only …

This paper introduces adaptive learning and endogenous indexation in the New-Keynesian Phillips curve and studies … adaptive learning lowers the cost of disinflation. This reduction can be exploited by a gradual approach to disinflation. Firms …

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 …