Orphanides, Athanasios; Williams, John C. - Federal Reserve Board (Board of Governors of the … - 2007
private learning and misperceptions of natural rates call for greater policy inertia, a more aggressive response to inflation … natural rates call for greater policy
inertia, a more aggressive response to inflation, and a smaller response to the … natural rates. In particular, the inflation rate is in part determined by the
unemployment gap, the deviation of the …