We develop an estimated model of the U.S. economy in which agents form expectations by continually updating their beliefs regarding the behavior of the economy and monetary policy. We explore the effects of policymakers' misperceptions of the natural rate of unemployment during the late 1960s...

"In Central Bank Governance and Oversight Reform, the distinguished contributors tackle this and a range of other key questions surrounding the balance of central bank authority with accountability and constraints. They discuss the conflicting public attitudes towards the Fed. The authors...