  I model the belief formation and decision making processes of economic agents
during a monetary policy regime change (an acceleration in the money supply)
with a deep reinforcement learning algorithm in the AI literature. I show that
when the money supply accelerates, the learning agents only adjust their
actions, which include consumption and demand for real balance, after gathering
learning experience for many periods. This delayed adjustments leads to low
returns during transition periods. Once they start adjusting to the new
environment, their welfare improves. Their changes in beliefs and actions lead
to temporary inflation volatility. I also show that, 1. the AI agents who
explores their environment more adapt to the policy regime change quicker,
which leads to welfare improvements and less inflation volatility, and 2. the
AI agents who have experienced a structural change adjust their beliefs and
behaviours quicker than an inexperienced learning agent.
