Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5060419 | Economics Letters | 2012 | 4 Pages |
Abstract
⺠We study the problem of a central bank that must select the true model across competing alternatives. ⺠Central banks should not deviate from the full-information optimal policy to speed up learning. ⺠Private sector's learning does not affect the speed of selection of the true model. ⺠Selection of the true model is hampered in an economy with volatile demand shocks.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Federico Ravenna,