Monetary policy and heterogeneous expectations

Economic Theory

Volumn 47, Issue 2-3, 2011, Pages 365-393

  Branch, William A ^a   Evans, George W ^b,c  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF OREGON   (United States)

^c UNIVERSITY OF ST ANDREWS   (United Kingdom)

Author keywords

Adaptive learning; Heterogeneous expectations; Monetary policy; Multiple equilibria

Indexed keywords

EID: 79955913067     PISSN: 09382259     EISSN: 14320479     Source Type: Journal    
DOI: 10.1007/s00199-010-0539-9     Document Type: Article

References (29)

1. Branch W. A.: The theory of rationally heterogeneous expectations: Evidence from survey data on inflation expectations. Econ J 114, 592-621 (2004).
2. Branch W. A., Evans G. W.: Intrinsic heterogeneity in expectation formation. J Econ Theory 127, 264-295 (2006).
3. Branch W. A., Evans G. W.: Model uncertainty and endogenous volatility. Rev Econ Dyn 10, 207-237 (2007).
4. Branch, W. A., Evans, G. W.: Asset return dynamics and learning. Rev Financial Stud (2009, forthcoming).
5. Branch W. A., McGough B.: A New Keynesian model with heterogeneous expectations. J Econ Dyn Control 33, 1036-1051 (2009).
6. Branch, W. A., McGough, B.: Business cycle amplification with heterogeneous expectations. Econ Theory, this volume (2010).
7. Brock W. A., Hommes C. H.: A rational route to randomness. Econometrica 65, 1059-1095 (1997).
8. Bullard J., Mitra K.: Learning about monetary policy rules. J Monet Econ 49, 1105-1129 (2002).
9. Clarida R., Gali J., Gertler M.: The science of monetary policy: a New Keynesian perspective. J Econ Lit 37, 1661-1707 (1999).
10. De Grauwe, P.: Animal spirits and monetary policy. Econ Theory, this volume (2010).
11. Evans G. W., Honkapohja S.: Learning and Expectations in Macroeconomics. Princeton University Press, Princeton (2001).
12. Evans G. W., Honkapohja S.: Expectations and the stability problem for optimal monetary policies. Rev Econ Stud 70, 807-824 (2003).
13. Fehr E., Tyran J. R.: Limited rationality and strategic interaction: the impact of the strategic environment on nominal inertia. Econometrica 76, 353-394 (2008).
14. Guesnerie, R., Jara-Moroni P.: Expectational coordination in a class economies with strategic substitutabilities: the complete information case. Econ Theory, this volume (2010).
15. Guo, W. C., Wang, F. Y., Wu, H. M.: Financial leverage and market volatility with rational beliefs. Econ Theory, this volume (2010).
16. Kurz M.: On the structure and diversity of rational beliefs. Econ Theory 4, 1-24 (1994).
17. Kurz M., Jin H., Motolese M.: The role of expectations in economic fluctuations and the efficacy of monetary policy. J Econ Dyn Control 29, 2017-2065 (2005).
18. Kurz, M., Motolese, M.: Diverse beliefs and time variability of risk premia. Econ Theory, this volume (2010).
19. McCallum, B. T.: Issues in the design of monetary policy rules, Chapter 23, pp. 1483-1530. See Taylor and Woodford (1999).
20. Sargent T. J.: The Conquest of American Inflation. Princeton, Princeton University Press (1999).
21. Sargent T. J.: Evolution and intelligent design. Am Econ Rev 98, 5-37 (2008).
22. Sims C., Zha T.: Were there regime switches in us monetary policy?. Am Econ Rev 96, 54-81 (2006).
23. Slobodyan, S., Wouters, R.: Learning in an estimated DSGE model. mimeo (2007).
24. Stock, J. H., Watson, M. W.: Has the business cycle changed? evidence and explanation. In: Monetary Policy and Uncertainty: Adapting to a Changing Economy. Proceedings of symposium sponsored by Federal Reserve Bank of Kansas City, Jackson Hole, WY (2003).
25. Taylor J.: Discretion versus policy rules in practice. Carnegie-Rochester Conference Series in Public Policy 39, 195-214 (1993).
26. Taylor, J., Woodford, M. (eds): Handbook of Macroeconomics, vol. 1. Elsevier, Amsterdam (1999).
27. Wieland, V., Wolters, M.: The diversity of forecasts from macroeconomic models of the U. S. economy. Econ Theory, this volume (2010).
28. Woodford M.: Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton University Press, Princeton (2003).
29. Young P. H.: Strategic Learning and its Limits. Oxford, University Press (2004).