learning about the nature of these deviations. Under constrained discretion, only short deviations occur, agents' uncertainty …

minorities, are highly heterogeneous in their expectations of inflation. We estimate a model of inflation expectations based on … learning from experience that also allows for heterogeneity in both private information and updating. Our model vastly … outperforms existing models of inflation expectations in explaining the heterogeneity in the data. We find that women, ethnic …

The paper considers a New Keynesian framework in which agents form expectations based on a combination of mis …-specified forecasts and myopia. The proposed expectations formation process is found to be consistent with all three empirical facts on … paper then derives the general equilibrium solution consistent with the proposed expectations formation process and …