-formation capabilities of agents. Under efficient signal extracting, noisy economic indicators dampen cyclical volatility. The opposite …

This paper studies the volatility implications of anticipated cost-push shocks (i.e. news shocks) in a New Keynesian …), anticipated cost-push shocks lead to a higher (lower) volatility in the output gap and in the central bank’s loss than an … unanticipated shock of the same size. The inversion of the volatility effects of news shocks between rational and boundedly rational …