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Adaptive Learning, Endogenous Inattention, and Changes in Monetary Policy Author info | Abstract | Publisher info | Download info | Related research | Statistics Wiliam Branch (University of Californis - Irvine)
John Carlson (Federal Reserve Bank of Cleveland)
George W. Evans () (University of Oregon Economics Department)
Bruce McGough (Oregon State University)
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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 process can converge to a new equilibrium in which both output and price volatility are lower.
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Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number
2006-6.
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Length: 11
Date of creation: 22 Jun 2006Date of revision:
Handle: RePEc:ore:uoecwp:2006-6Contact details of provider: Postal: 1285 University of Oregon, 435 PLC, Eugene, OR 97403-1285 Phone: (541) 346-4661 Fax: (541) 346-1243 Email: Web page: http://economics.uoregon.edu/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Bill Harbaugh).
Keywords: expectations optimal monetary policy bounded rationality economic stability adaptive learning. Other versions of this item:
Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Evans , George W & Honkapohja, Seppo, 2007.
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George Evans & Seppo Honkapohja, 2008.
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