Evans, George W. (contributor); … - 2008
imply
expectational instability of private agents’ learning. We use the standard New
Keynesian model to illustrate this …-
sisisbasedontheassumptionthattheprivateagentsandthepolicy-maker
know the “true model of the economy”, except for unforecastable random
shocks.
2
The RE assumption is … first summarize research on
learnability of REE when the basic New Keynesian model is extended to in-
corporate further …