expectations for the conduct of monetary policy. We first review the literature that studies the implications of adaptive learning … structure of the economy, including the precise mechanism generating private sector's expectations. The focus on optimal policy … allows us to investigate how and to what extent a change in the assumption of how agents form their inflation expectations …

rational expectations, and study the role that a central bank, implementing an inflation targeting regime via a monetary policy … stabilisation, as well as the beneficial role played by that target as an anchoring device for private inflation expectations. We …

expectations, a fall in nominal wage growth, and a favorable supply-side shock. We show that the macroeconomic effects of …

roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …