examine a purely forward-looking New Keynesian Phillips curve with heterogeneous expectations, where the coordination of … is allowed to vary, there exist multiple equilibria: rational expectations equilibrium without any inertia and …

-term inflation expectations of professionals with the perceived inflation target. …

expectations. Instead, we examine the dynamic consequences of implementation strategies, when the actual economy features … expectational heterogeneity. Agents have either rational or adaptive expectations. Consequently the central bank's ability to … achieve price-stability under heterogeneous expectations depends on its objective and implementation strategy. An expectations …

Rational Expectations (REE), BLE, and constant gain learning models shows that the BLE model outperforms the REE benchmark and …-autocorrelation learning of optimal AR(1) beliefs provides the best fit when short-term survey data on inflation expectations are taken into … account in the estimation. As a policy application, we show that optimal Taylor rules under AR(1) expectations inherit history …

show that adaptive expectations combined with asymmetry in the Phillips curve of a specific sort together provide an …