feature of the model is that learning operates in both the demand for assets and the supply of credit. Interactions between … propagation. In contrast, the paper shows why learning involving only one side on the market, which has been the focus of most of …

feature of the model is that learning operates in both the demand for assets and the supply of credit. Interactions between … propagation. In contrast, the paper shows why learning involving only one side on the market, which has been the focus of most of …

policymakers, learning from the experience of the 1970s, eschewed activist policies in favor of policies that concentrated on the …

: rational expectations and learning. We show that in this environment the ability to stabilize the real side of the economy is … private learning and misperceptions of natural rates call for greater policy inertia, a more aggressive response to inflation … economy. We show that such policies are quite robust to potential misspecification of private sector learning and the …