#2000-030C "Determinacy, Learnability, and Monetary Policy Inertia"
by James B. Bullard, and Kaushik Mitra
November 2000
Revised October 2005

We show how monetary policy inertia can help alleviate problems of indeterminacy and non-existence of stationary equilibrium observed for some commonly-studied monetary policy rules. We also find that inertia promotes learnability of equilibrium. The context is a simple, forward-looking model of the macroeconomy widely used in the rapidly expanding literature in this area. More...

PUBLISHED: Journal of Money, Credit, and Banking, August 2007, 39(5), pp. 1177-212

#2000-001E "Learning About Monetary Policy Rules"
by James B. Bullard, and Kaushik Mitra

Revised 2002

We study macroeconomic systems with forward-looking private sector agents and a monetary authority that is trying to control the economy through the use of a linear policy feedback rule. We use stability under recursive learning a la Evans and Honkapohja (2001) as a criterion for evaluating monetary policy rules in this context. We find that considering learning can alter the evaluation of alternative policy rules. More...

PUBLISHED: Journal of Monetary Economics, September 2002, 49(6), pp. 1105-29