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individuals use simple rules of thumb (heuristics) to forecast the future inflation and output gap. We compare this model with the …
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individuals use simple rules of thumb (heuristics) to forecast the future inflation and output gap. We compare this model with the …
Persistent link: https://www.econbiz.de/10013316538
rationality. Economic agents form their expectations using heuristics - they choose between a few simple rules based on their past …
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This paper offers several contributions to actual research and discussion on monetary policy. It clarifies the relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent Blanchard proposal to implement a higher inflation...
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