Title: Monetary policy, judgment and near-rational exuberance
Description: "We study how the use of judgment or "add-factors" in macroeconomic forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods.  We examine the possibility of a new phenomenon, which we call exuberance equilibria, in the New Keynesian monetary policy framework.  Inclusion of judgment in forecasts can lead to self-fulfilling fluctuations in a subset of the determinacy region.  We study how policymakers can minimize the risk of exuberance equilibria"--Federal Reserve Bank of St. Louis web site.