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New Keynesian theory identifies a set of principles central to the design and implementation of monetary policy. These …
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The interaction between monetary and fiscal policy and the associated uncertainty about this interaction have been put on center stage by the recent financial crisis and the associated recession. In our model agents learn about both fiscal and monetary policy rules via the Kalman Filter. In...
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learning, choosing among a set of alternative forecasting models. The analysis is accompanied by empirical evidence on the …
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