Incomplete Information, Higher-Order Beliefs and Price Inertia
---- Acknowledgements ----
This paper was prepared for the 2008 SNB/JME conference on "Incomplete Information and Monetary Policy," hosted by the Gerzensee Study Center, Switzerland. We received useful comments from multiple conference participants. We are particularly grateful to our discussants, Stephen Morris and Elmar Mertens, and to the organizers of the conference, Sergio Rebelo and Robert King. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.