Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 2012 erstellt
Description:
This paper analyses optimal monetary policy and welfare implications of three endogenous processes in forming inflation expectations, which depart from the standard case of rational expectations. Two processes assume heterogeneous expectations driven either by discretionary central banks through the release of information or by agents through discrete choice among two forecast rules; the third process is a Bayesian learning about the central bank's inflation target. Transitional dynamics towards steady-state show that, overall, an active and transparent monetary policy promoting rationality and learning may raise welfare during disinflations, while a passive and less transparent attitude may stabilise output and raise welfare through inflationary surprises