Search Results
Journal Article
International Inflation Trends
Expected inflation rates have risen in many countries after fiscal and monetary stimulus helped economies recover from the COVID-19 lockdown.
Journal Article
Convergence to Rational Expectations in Learning Models: A Note of Caution
We show in a simple monetary model that the learning dynamics do not converge to the rational expectations monetary steady state. We then show it is necessary to restrict the learning rule to obtain convergence. We derive an upper bound on the gain parameter in the learning rule, based on economic fundamentals in the monetary model, such that gain parameters above the upper bound would imply that the learning dynamics would diverge from the rational expectations monetary steady state.
Speech
What to Expect When You’re Expecting to Normalize Monetary Policy
"Removing accommodation is the right next step,? said President Patrick Harker in a speech on November 13 in Tokyo. He also said in ?the event of another shock,? making sure tools are effective, in his view, ?means reducing our balance sheet.?