Monetary policy, learning and the speed of convergence

Journal of Economic Dynamics and Control

Volumn 31, Issue 9, 2007, Pages 3006-3041

  Ferrero, Giuseppe ^a  

^a BANK OF ITALY   (Italy)

Author keywords

Learning; Monetary policy; Rational expectations; Speed of convergence

Indexed keywords

EID: 34447636554     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jedc.2006.10.003     Document Type: Article

References (25)

1. Aoki, K., Nikolov, K., 2006. Rule-based monetary policy under Central Bank learning. In: Clarida, R., Frankel, J., Giavazzi, F., West, K. (Eds.), International Seminar on Macroeconomics 2004, NBER.
2. Benveniste A., Metivier M., and Priouret P. Adaptive Algorithms and Stochastic Approximations (1990), Springer, Berlin
3. Bernanke, B., Woodford, M., 1997. Inflation forecasts and monetary policy. Journal of Money, Credit and Banking 29, 653-684.
4. Bullard J., and Mitra K. Learning about monetary policy rules. Journal of Monetary Economics 49 (2002) 1105-1129
5. Clarida R., Gali J., and Gertler M. The science of monetary policy: a new Keynesian perspective. Journal of Economic Literature 37 (1999) 1661-1707
6. Clarida R., Gali J., and Gertler M. Monetary policy rules and macroeconomic stability: evidence and some theory. Quarterly Journal of Economics 115 (2000) 147-180
7. Evans, G.W., Honkapohja, S., 1993. Adaptive forecasts, hysteresis, and endogenous fluctuations. Economic Review, vol. 1, Federal Reserve Bank of San Francisco.
8. Evans G.W., and Honkapohja S. Learning and Expectations in Macroeconomics (2001), Princeton University Press, Princeton, NJ
9. Evans G.W., and Honkapohja S. Expectations and the stability problem for optimal monetary policies. Review of Economic Studies 70 (2003) 807-824
10. Evans G.W., and Honkapohja S. Adaptive learning and monetary policy design. Journal of Money Credit and Banking 35 (2003) 1045-1072
11. Evans G.W., and Honkapohja S. Monetary policy, expectations and commitment. Scandinavian Journal of Economics 108 (2006) 15-38
12. Favero, C., Freixas, X., Persson, T., Wyplosz, C., 2001. Monitoring the European Central Bank 2, CEPR.
13. Ferrero, G., 2004. Expectations, interest rate and limited commitment, Ph.D. Thesis.
14. Giannitsarou C. Heterogeneous learning. Review of Economic Dynamics 6 (2003) 885-906
15. Greenspan, A., 2004. Risk and uncertainty in monetary policy. American Economic Review 94.
16. Honkapohja S., and Mitra K. Performance of monetary policies with internal Central Bank forecasting. Journal of Economic Dynamics and Control 29 (2004) 627-658
17. Marcet, A., Nicolini, J.P., 2003. Recurrent hyperinflations and learning. American Economic Review 93.
18. Marcet A., and Sargent T.J. Convergence of least squares learning mechanism in self-referential linear stochastic models. Journal of Economic Theory 48 (1989) 337-368
19. Marcet, A., Sargent, T.J., 1989b. Least squares learning and the dynamics of hyperinflation. In: Barnet, J., Geweke, Shell, K. (Eds.), International Symposia in Economic Theory and Econometrics 4, Cambridge University Press, Cambridge.
20. Marcet, A., Sargent, T.J., 1995. Speed of convergence of recursive least squares: learning with autoregressive moving-average perceptions. In: Kirman, A., Salmon, M. (Eds.), Learning and Rationality in Economics. Basil Blackwell, Oxford, pp. 179-215.
21. Orphanides, A., Williams, J.C., 2004. Imperfect knowledge, inflation expectations, and monetary policy. In: Bernanke, B., Woodford, M. (Eds.), The inflation-targeting debate, Chicago, University of Chicago Press, pp. 201-234.
22. Sargent T.J. The Conquest of American Inflation (1999), Princeton University Press, Princeton, NJ
23. Svensson, L., Woodford, M., 2003. Implementing Optimal Policy through Inflation-forecast Targeting. NBER Working Paper W9747.
24. Timmerman, A., 1996. Excess volatility and predictability of stock prices in autoregressive dividend models with learning. Review of Economic Studies 63.
25. Woodford M. Interest and Prices (2003), Princeton University Press, Princeton, NJ