RT Monograph
SR 00
A1 Assenza, Tiziana
A1 Heemeijer, P.
A1 Hommes, C.H.
A1 Massaro, D.
T1 Managing self-organization of expectations through monetary policy: a macro experiment
YR 2018
FD 2018-11
VO 18-963
SP 80
K1 Laboratory Experiments
K1 Monetary Policy
K1 Expectations
K1 Taylor principle
AB The New Keynesian theory of inflation determination is tested in this paper by means of laboratory experiments. We find that the Taylor principle is a necessary condition to ensure convergence to the inflation target, but it is not sufficient. Using a behavioral model of expectation formation, we show how heterogeneous expectations tend to self-organize on different forecasting strategies depending on monetary policy. Finally, we link the central bank ability to control inflation to the impact that monetary policy has on the type of feedback {positive or negative{ between expectations and realizations of aggregate variables and in turn on the composition of subjects with respect to the type of forecasting rules they use.
T2 TSE Working Paper
PB TSE Working Paper
PP Toulouse
AV Published
LK https://publications.ut-capitole.fr/id/eprint/26410/
UL http://tse-fr.eu/pub/33074