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Trend Inflation Under Bounded Rationality

Author

Listed:
  • Francisco E. Ilabaca
  • Greta Meggiorini

Abstract

This paper evaluates the implications of introducing bounded rationality into a New Keynesian model with trend inflation.

Suggested Citation

  • Francisco E. Ilabaca & Greta Meggiorini, 2023. "Trend Inflation Under Bounded Rationality," Working Papers 23-09, Office of Financial Research, US Department of the Treasury.
    • Handle: RePEc:ofr:wpaper:23-09
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    File URL: https://www.financialresearch.gov/working-papers/files/OFRwp-23-09-trend-inflation-under-bounded-rationality.pdf
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    References listed on IDEAS

    as
    1. Canova, Fabio & Ferroni, Filippo, 2020. "A hitchhiker guide to empirical macro models," CEPR Discussion Papers 15446, C.E.P.R. Discussion Papers.
    2. Xavier Gabaix, 2014. "A Sparsity-Based Model of Bounded Rationality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1661-1710.
    Full references (including those not matched with items on IDEAS)

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