Inflation targeting in a learning economy: An ABM perspective

► We analyse inflation targeting within an agent-based model of a learning economy. ► Agents are heterogeneous and follow heuristics, updated through social learning. ► We analyse how individual learning interplays with macroeconomic stability. ► Those interplays give a strong rationale to an explicit and credible inflation target. ► Disclosure of highly imperfect information implies a high welfare cost.