Published in:FRB of Cleveland Working Paper ; No. 06-10
Extent:
1 Online-Ressource (13 p)
Language:
English
DOI:
10.2139/ssrn.1022328
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 2006 erstellt
Description:
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