This paper investigates the performances of an inflation targeting regime in a learning economy whose functioning is … Simon (1971) [Simon, H., The Theory of Problem Solving, in 'IFIP Congress (1)', 1971, pp. 261-277]. Instead of assuming that …, we assume that their behaviour is guided by simple rules of thumb – or heuristics – while a continuous learning process …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably far-sighted. But, under Euler-equation learning, the model can fit the data with only …

We develop a dynamic learning model to study money adoption. Agents own an asset that can potentially serve as money … distribution of dividends and based on the learning outcomes they coordinate to adopt the asset as money or to abandon it. We …

New Keynesian theory identifies a set of principles central to the design and implementation of monetary policy. These …