Kording and Wolpert (2004), hereafter referred to as KW, describe an experiment where subjects engaged in a repeated task entailing movements of their finger. Subjects strove for accuracy in the stochastic environment and, on some trials, received mid-trial and post-trial feedback. KW claims...

This paper estimates a dynamic stochastic equilibrium model in which agents use a Bayesian rule to learn about the state of monetary policy. Monetary policy follows a nominal interest rate rule that is subject to regime shifts. The following results are obtained. First, the author's policy...