The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard … decades. In this paper, we develop a justification for including money in the interest rate rule by allowing for imperfect …

criticized for failing to explain common trends in money growth and inflation, and that therefore money should be used as a cross …-check is shown to be effective in offsetting persistent deviations of inflation due to central bank misperceptions. …

-checking does not require direct effects of money on output or inflation. …The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. In this paper, we explore possible justifications. The case against including money in the central …

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the … cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models …

channel through which monetary policy lowers the volatility of inflation and, even more importantly, output. …