Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38973 
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dc.contributor.authorMolnár, Krisztinaen
dc.contributor.authorSantoro, Sergioen
dc.date.accessioned2010-06-18-
dc.date.accessioned2010-08-18T11:19:00Z-
dc.date.available2010-08-18T11:19:00Z-
dc.date.issued2010-
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
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x3072en
dc.subject.jelC62en
dc.subject.jelD83en
dc.subject.jelD84en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordoptimal monetary policyen
dc.subject.keywordlearningen
dc.subject.keywordrational expectationsen
dc.subject.stwGeldpolitiken
dc.subject.stwInflationserwartungen
dc.subject.stwLernprozessen
dc.subject.stwAdaptive Erwartungen
dc.subject.stwTheorieen
dc.titleOptimal monetary policy when agents are learning-
dc.typeWorking Paperen
dc.identifier.ppn629641862en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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