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This paper estimates a DSGE model with learning to reexamine the evidence on time variation in post-war U.S. monetary policy. Several papers document a regime switch, by showing that policy changed from 'passive' and destabilizing in the pre-1979 period to 'active' and stabilizing in the...
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Eine auf den Fundamentaldaten beruhende Regelbindung der Geldpolitik ohne Selbstverpflichtung, die bei vollkommen … geeigneter Weise in die optimale Geldpolitik einbezogen werden. Diese eindeutige Schlußfolgerung gilt auch dann, wenn sich der … geldpolitische Entscheidungsträger und die privaten Akteure in einem simultanen Lernprozess befinden. Unsere Ergebnisse zeigen, wie …
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We analyze determinacy and stability under learning (E-stability) of rational expectations equilibria in the Blanchard and Galí (2006, 2008) New-Keynesian model of inflation and unemployment, where labor market frictions due to costs of hiring workers play an important role. We derive results...
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A fundamentals based monetary policy rule, which would be the optimal monetary policy without commitment when private agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules. This problem can be overcome if private expectations are...
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