Managing Beliefs about Monetary Policy under Discretion

Elmar Mertens

Xdata	x, Prior Beliefs	x, Response Function	pi, Prior Beliefs	pi, Response Function	Target, Prior Beliefs	Target, Response Function	n, Actual	n, Belief	tau, Prior Beliefs	tau, Response Function	epsilon, Response Functio
	NaN	-0.1299	NaN	0.2524	NaN	0.0291	1	0.6179	NaN	0.3821	-0.353
1	0.1762	-0.0341	0.2775	0.0663	0.3439	0.0076		-0.1003	0.3439	0.1003	-0.0927
2	0.0463	-0.009	0.0729	0.0174	0.0903	0.002		-0.0263	0.0903	0.0263	-0.0243
3	0.0122	-0.0024	0.0191	0.0046	0.0237	0.0005		-0.0069	0.0237	0.0069	-0.0064
4	0.0032	-0.0006	0.005	0.0012	0.0062	0.0001		-0.0018	0.0062	0.0018	-0.0017