Optimal Monetary Policy Under Heterogeneous Beliefs

We use a New Keynesian model that features rational and non-rational households. Assuming that both the fraction of rational households and the expectations formation process are uncertain from the perspective of the central bank, we derive robust optimal discretionary monetary policy in a simple mi...

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Bibliographic Details

Published in:	MAGKS - Joint Discussion Paper Series in Economics (Band 43-2022)
Main Author:	Finck, David
Format:	Article
Language:	English
Published:	Philipps-Universität Marburg 2022
Subjects:	Heterogeneous Expectations Wirtschaft Robust Monetary Policy Uncertainty Policy Implementation Economics
Online Access:	PDF Full Text
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