effect of surprise inflation on aggregate demand. We derive the optimal policy under active learning and compare it to two … limiting cases-certainty equivalence policy and cautionary policy, in which learning takes place passively. Our novel result is … that the two passive learning policies represent an upper and lower bound for the active learning policy, irrespective of …

We analyze determinacy and stability under learning (E-stability) of rational expectations equilibria in the Blanchard …

learning (DOP) and compare it two limiting cases---certainty equivalence policy (CEP) and cautionary policy (CP). It turns out … learning (DOP) and compare it two limiting cases---certainty equivalence policy (CEP) and cautionary policy (CP). It turns out … CEP, at low levels of inherited inflation the DOP resembles the CP. -- Learning ; inflation expectations ; disinflation …

active learning possibilities has effects on the optimal interest rate rule followed by the central bank.For a wide range of …

learning (DOP) and compare it two limiting cases---certainty equivalence policy (CEP) and cautionary policy (CP). It turns out …

active learning possibilities has effects on the optimal interest rate rule followed by the central bank. For a wide range of …