Monetary policy rules in a non-rational world: A macroeconomic experiment

• Published in: Journal of economic theory Vol. 197; p. 105203
• Main Author: Mauersberger, Felix
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01.10.2021
• Subjects: Adaptive learning; Expectations; Interest rates; Laboratory experiment; New-Keynesian model; Expectations; Adaptive learning; E52; New-Keynesian model; E37; C91; Laboratory experiment; C92; Interest rates

This paper introduces a learning-to-forecast laboratory experiment based on a New-Keynesian macroeconomy that is particularly close to the model's microfoundations. In this setup, subjects forecast their individual optimal consumption and prices instead of aggregate outcomes. Due to different p...