context of an economy where economic agents have an imperfect understanding of the macroeconomic landscape within which the ….S. economy, we show that monetary policy rules that would perform well under the assumption of rational expectations can perform …

at stabilizing the economy and avoiding deflation in the presence of the zero lower bound on nominal interest rates. With … imperfect knowledge of the economy and therefore continuously reestimate the forecasting model that they use to form …

reference model while the true economy lies within a specified neighborhood of the reference model. In this paper, we show that … economy. We find that a robust outcome is attainable only in cases where the objective function places substantial weight on … tolerance of each model economy with respect to deviations from optimal policy. …

and 1970s? We use counterfactual simulations of an estimated model of the U.S. economy to evaluate alternative monetary … stability only if the Federal Reserve had possessed excellent information regarding the structure of the economy or if it had … acted as if it placed relatively low weight on stabilizing the real economy. Neither condition held true. We document that …

This paper investigates the role that imperfect knowledge about the structure of the economy plays in the formation of … learning technology to form expectations and continuously update their beliefs regarding the dynamic structure of the economy …

expectations in the economy and in the conduct of monetary policy. Agents are assumed to have imperfect knowledge of the precise … structure of the economy and the policymakers' preferences. Expectations are governed by a perpetual learning technology. With …