economy where (i) private agents have incomplete information and form their expectations using recursive learning algorithms … their target level; and (iii) the central bank, ignoring the exact mechanism used by private agents to form expectations … stabilize expectations and to speed up the learning process the response of the policy instrument to inflation should be …

have incomplete knowledge of the surrounding environment, they form expectations that may deviate substantially from the … policymaking of departing from the benchmark of rational expectations and assuming instead that agents learn adaptively. It focuses … explicit bounds on inflation, they seem better suited to restrain expectations from drifting significantly away from target …

We study an endowment economy with complete markets and heterogeneous agents who do not have rational expectations, but …. Finally, we find that our slight departure from rational expectations affects efficiency properties of the competitive … of individual expectations under which society is better off with financial autarky than with complete markets. The first …