This paper develops an adaptive learning formulation of an extension to the Ball, Mankiw, and Reis (2005) sticky information model that incorporates endogenous inattention. We show that, following an exogenous increase in the policymaker's preferences for price vs. output stability, the learning...

An examination of the various factors that have determined the level and growth of the federal debt over the past 40 years, with some perspective on future levels of federal debt.

An examination of the relationship between velocity and interest rates for two alternative measures of money, and an analysis of the effects of thrift restructuring on money demand.

A history and analysis of the debate about whether monetary policy should be conducted by rules known in advance to all or by policymaker discretion.

An examination of recent changes in the statistical properties of alternative measures of core inflation, identifying statistically significant change points in the fixed mean and finding that for all measures considered, changes in the inflation rate trend have been infrequent and, for the most...

A presentation of some tentative evidence that MZM, an alternative money measure comprising all instruments payable at par on demand, has exhibited a fairly stable relationship with nominal GDP and with its own opportunity cost in recent years, suggesting a potential role for policy.

An examination of the short- and long-term implications of an inflation policy on real output, using a method that allows structural interpretation of a simple VAR applied to a macroeconomic system that includes real output and inflation.

A review of the literature concerning how individuals learn to form rational expectations and a discussion of the meaning of rationality in a macroeconomy characterized by highly decentralized markets.