Tesfaselassie, M.F.; Schaling, E.; Eijffinger, S.C.W. - Erasmus Research Institute of Management (ERIM), ERIM … - 2006
In this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework. We find that under flexible inflation targeting and uncertainty in the degree of persistence in the economy, allowing for active learning possibilities has effects on the...