This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …

We derive optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show that … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by optimal policy under learning if the private sector actually …

feature of the model is that learning operates in both the demand for assets and the supply of credit. Interactions between … propagation. In contrast, the paper shows why learning involving only one side on the market, which has been the focus of most of …

exist multiple Misspecification Equilibria, a subset of which are stable under least squares learning and dynamic predictor …

In this article, we investigate the possibility of sunspot equilibria to emerge from a process of learning and …