Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100740
Authors: 
Ireland, Peter N.
Year of Publication: 
2003
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2003-22
Abstract: 
Athanasios Orphanides and John C. Williams' excellent conference paper, "Inflation Scares and Forecast-Based Monetary Policy," contributes importantly to the new and rapidly growing branch of the literature on bounded rationality and learning in macroeconomics. Their paper, like many others, derives interesting and useful theoretical results that show how the introduction of bounded rationality and learning impacts on the effects of monetary policy shocks and the characteristics of optimal monetary policy rules. This note suggests that some additional empirical work-some "irrational expectations econometrics," if you will-might serve to make these purely theoretical results seem more relevant and convincing.
Subjects: 
Equilibrium (Economics)
Monetary policy
Macroeconomics
Inflation (Finance)
Forecasting
Document Type: 
Working Paper

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