from the existing literature, which typically focuses on the learning of private agents during a disinflation. We build a …

uncertainty and learning. We find that the presence of a strategic interaction between the home and foreign central banks creates … an additional motivation for caution in monetary policy. An activist policy designed to help the learning of the home … central bank is suboptimal since it generates a strong reaction from the foreign central bank. As joint learning by the home …

This paper investigates the role of learning by private agents and the central bank (two-sided learning) in a New … these beliefs through a statistical learning algorithm as new information becomes available. We study the short-run dynamics … demonstrate that two-sided learning can generate substantial increases in volatility and persistence, and alter the behavior of …