learning. Learning – where expectations are formed by extrapolating from the historical data – can be an alternative means to …, there is some tentative evidence that learning is preferred over rational expectations in terms of fitting the data. Fourth …Expectations of the future play a key role in the transmission of monetary policy. Over recent years, a lot of …

Whether people form their expectations of the future in a model-consistent or extrapolative manner, has implications … information about inflation expectations – that survey measures of expectations are inconsistent with rational expectations, but … the public believes the bank will adhere to. When inflation expectations differ between groups, the <em>ex ante</em> real …