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

models of expectations formation that rely on econometric learning. Some apparently natural policy rules turn out to imply … expectational instability of private agents’ learning. We use the standard New Keynesian model to illustrate this problem and survey … learning. We then consider some practical concerns such as measurement errors in private expectations, observability of …

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 …

framework. Learning about the transmission process of monetary policy is introduced by having heterogeneous agents – ie central … of the term structure of interest rates. Here, following Evans and Honkapohja (2001), the learning scheme we investigate … is that of least-squares learning (recursive OLS) using the Kalman filter. We find that optimal monetary policy under …

, results depend on the learning scheme that is employed. Here, the learning scheme we investigate is that of least …-squares learning (recursive OLS) using the Kalman filter. A novel feature of a learning-based policy – as against the central bank …

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

learning mechanism in the economy results in significantly smaller costs to the economy. And we find that random shifts …