New Keynesian theory identifies a set of principles central to the design and implementation of monetary policy. These … principles rely on the ability of a central bank to manage expectations precisely, with policy prescriptions typically derived … whether central banks can influence expectations with as much control as previously thought. In this paper, we survey the …

We review and evaluate methods previously adopted in the applied literature of adaptive learning in order to initialize … attenuated by penalizing the variance of estimation errors. Even so, the joint estimation of learning initials with other model … Keynesian Phillips curve with learning, where we find that our estimation approach provides robustness to the initialization of …