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-level targeting and compare it to inflation targeting. Domain of attraction of the targeted steady state gives a robustness criterion … learning. Credibility is measured by accuracy of this forecasting method relative to simple statistical forecasts. Credibility … evolves through reinforcement learning. Initial credibility and initial level of target price are key factors influencing …
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An economy exhibits structural heterogeneity when the forecasts of different agents have different effects on the determination of aggregate variables. Various forms of structural heterogeneity can arise and we study the important case of economies in which agents' behavior depends on forecasts...
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