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dc.contributor.authorMolnár, Krisztinaen_US
dc.contributor.authorSantoro, Sergioen_US
dc.date.accessioned2010-06-18en_US
dc.date.accessioned2010-08-18T11:19:00Z-
dc.date.available2010-08-18T11:19:00Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/38973-
dc.description.abstractWe derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show that this slight departure from rationality has important implications for policy design. The central bank faces a new intertemporal trade-off, not present under rational expectations: it is optimal to forego stabilizing the economy in the present in order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector actually has rational expectations is much smaller than if the central bank mistakenly assumes rational expectations when in fact agents are learning.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper Monetary Policy and International Finance 3072en_US
dc.subject.jelC62en_US
dc.subject.jelD83en_US
dc.subject.jelD84en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordoptimal monetary policyen_US
dc.subject.keywordlearningen_US
dc.subject.keywordrational expectationsen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwInflationserwartungen_US
dc.subject.stwLernprozessen_US
dc.subject.stwAdaptive Erwartungen_US
dc.subject.stwTheorieen_US
dc.titleOptimal monetary policy when agents are learningen_US
dc.typeWorking Paperen_US
dc.identifier.ppn629641862en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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