Bertocchi, Graziella; Spagat, Michael - Institut de Recherche Économique et Sociale (IRES), … - 1991
We present a model of monetary policy where the policymaker faces uncertainty about wich he is learning in a Bayesian fashion. A fixed money supply levels. A fixed money supply rule is not optimal in this context since the learning leads to constant adjustments in money supply levels. We present...