One that has received particular attention in the literature, and which is closely  3  Evans and Honkapohja emphasize this point in a series of papers; see, for example, Evans and Honkapohja (2003b). Sack (2003) provides evidence that U.S. monetary policy does respond to inflation expectations, as measured by the yields on nominal and inflation-indexed Treasury securities.
4  Erceg and Levin (2003) model the disinflation process of the early 1980s using the assumption that the public learns optimally about inflation. They show that learning and the consequently slow adjustment of inflation expectations help to explain the severe economic contraction of the period.