agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules …. This problem can be overcome if private expectations are observed and suitably incorporated into the policy maker's optimal … observed household and firm expectations …

agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules …. This problem can be overcome if private expectations are observed and suitable incorporated into the policy maker's optimal … observed household and firm expectations …

agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules …. This problem can be overcome if private expectations are observed and suitably incorporated into the policy maker's optimal … observed household and firm expectations …

Keynesian model. We find that slightly departing from rational expectations substantially changes the way the central bank deals … (output gap) today or stabilizing it tomorrow. The central bank should optimally anchoring private agents expectations in the … short term in exchange of easier future intratemporal trade-offs. Compared to the rational expectations equilibrium, the …

intertemporal trade-off, not present under rational expectations: it is optimal to forego stabilizing the economy in the present in … actually has rational expectations is much smaller than if the central bank mistakenly assumes rational expectations when in … fact agents are learning. -- optimal monetary policy ; learning ; rational expectations …

A striking implication of the replacement of adaptive expectations by Rational Expectations was the "Lucas Critique … adaptive expectations. We show that for a range of processes, monetary policy remains subject to the Lucas critique. However …

intertemporal trade-off, not present under rational expectations: it is optimal to forego stabilizing the economy in the present in … actually has rational expectations is much smaller than if the central bank mistakenly assumes rational expectations when in …

intertemporal trade-off, not present under rational expectations: it is optimal to forego stabilizing the economy in the present in … actually has rational expectations is much smaller than if the central bank mistakenly assumes rational expectations when in …

inferences under rational expectations, whereas the fraction of backward looking price setters increases. …