Adaptive Learning, Endogenous Inattention, and Changes in Monetary Policy

Show full item record

Title: Adaptive Learning, Endogenous Inattention, and Changes in Monetary Policy
Author: Branch, William A.; Evans, George W., 1949-; Carlson, John; McGough, Bruce
Abstract: 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.
Description: 11 p.
URI: http://hdl.handle.net/1794/3423
Date: 2006-06-22


Files in this item

Files Size Format View
UO-2006-6_Evans_Adaptive.pdf 175.2Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record