with experience. We then reject increasing confidence in private information or learning about the structure of the …

We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …

. Learning played a major role in individuals achieving what was referred to as complete rationality. I draw on these ideas, and … suggest that developing models in which economic agents have degrees (or levels) of economic cognition which are endogenously … instead introduce continuous metrics of cognition into economic thinking. Such an approach also poses the two policy issues of …

endogenously influence whether learning occurs through its policy choices (policy experimentation), future political competition …

by growth expectations. Adaptive learning dynamics determine country-specific short run transition paths. Countries …

term gains without triggering an abrupt loss of confidence, since agents update expectations sluggishly. In the long run … losses are outweighed by short term gains from the learning phase. …