Browsing Norges Banks vitenarkiv by Author "Santoro, Sergio"
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Optimal Monetary Policy When Agents Are Learning
Molnár, Krisztina; Santoro, Sergio (Working Papers;8/2010, Working paper, 2010)We 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 ...