, learning from the experience of the 1970s, eschewed activist policies in favor of policies that concentrated on the achievement …

: rational expectations and learning. We show that in this environment the ability to stabilize the real side of the economy is … private learning and misperceptions of natural rates call for greater policy inertia, a more aggressive response to inflation … economy. We show that such policies are quite robust to potential misspecification of private sector learning and the …

optimise under limited-information model-consistent learning, where each agent knows the parameters related to his …/her optimization problem. Under this learning approach the effect of a monetary policy shock on output and inflation is more muted but … learning version, we .find stronger expansionary effects of an increase in government expenditure during periods of downturns …

realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … path to the shocks to the economy when agent form expectations using our learning approach compared to expectations formed …

determination of aggregate variables. We study how different forms of heterogeneity in structure, forecasts and adaptive learning … rules affect the conditions for convergence of adaptive learning towards rational expectations equilibrium. Results are …

realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … differences in the adjustment path to the shocks to the economy when agent form expectations using our learning approach compared …