We provide the first direct empirical support for the relevance of signalling in monetary policy. In our dynamic model …. Signalling leads all bankers to be tougher on inflation initially, but to become less tough with experience. This evolution is … structurally estimate the model using Bank of England data and confirm both predictions. Signalling increases the probability new …

policy-makers, learning from the experience of the 1970s, eschewed activist policies in favour of policies that concentrated …

uncertainty, that there is a learning cost associated with interest rate reversals. A policy that frequently reverses the interest … monetary policy internalizes this learning cost and therefore has a lower number of interest rate reversals. The incentive to …

We examine optimal policy in a two-country model with uncertainty and learning, where monetary policy actions affect … because of the interaction between the home and foreign central banks. In a two-country symmetric equilibrium, learning is …

We respond to the challenge of explaining the Great Inflation by building a coherent framework in which both learning … improves our ability to explain the Great Inflation with a learning model. Bayesian MCMC estimation results are encouraging and …

This paper introduces adaptive learning and endogenous indexation in the New-Keynesian Phillips curve and studies … adaptive learning lowers the cost of disinflation. This reduction can be exploited by a gradual approach to disinflation. Firms …

types to voters. We identify two novel implications of models in which signalling incentives are important. First, because …. Second, voters can exploit the signalling behavior of politicians by precommitting to a higher threshold for signals received …. Raising the threshold discourages signalling effort by low quality politicians but encourages effort by high quality …

becomes a more accurate signal of their ability. Elections reduce the learning effect, and the reduction in this effect may …