It is not possible to devise an economic model that captures all the relevant variables and at the same time gives accurate predictions about the future. It may thus be reasonable to assume that expectations formation is both a process of adaptive learning and bounded rationality.
In terms of practice, a steady and low inflation combined with well-anchored inflation expectations helps the monetary authority in achieving the other objectives of monetary policy – such as economic growth and financial stability. The state of inflation expectations greatly influences actual inflation and, thus, the central bank’s ability to achieve price stability.