optimal but 'simple' forecast functions, describes subjects'; inflation expectations surprisingly well and explains the …This paper presents experimental evidence from a monetary sticky price economy in which output and inflation depend on … expected future inflation. With rational inflation expectations, the economy does not generate persistent deviations of output …

optimal but 'simple' forecast functions, describes subjects' inflation expectations surprisingly well and explains the …This paper presents experimental evidence from a monetary sticky price economy in which output and inflation depend on … expected future inflation. With rational inflation expectations, the economy does not generate persistent deviations of output …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with … consistent with rational expectations once learning is complete. When past performance governs the choice of forecast model …, agents may prefer to use the inconsistent forecast model, which generates an equilibrium where forecasts are inefficient …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with … consistent with rational expectations once learning is complete. When past performance governs the choice of forecast model …, agents may prefer to use the inconsistent forecast model, which generates an equilibrium where forecasts are inefficient …