Kurz, Mordecai; Motolese, Maurizio; Piccillo, Giulia; … - Dipartimenti e Istituti di Scienze Economiche, … - 2015
We study the impact of diverse beliefs on conduct of monetary policy. Individual belief is modeled by a state variable that defines an individual’s perceived laws of motion. We use a New Keynesian Model that is solved with a quadratic approximation hence individual decisions are quadratic...