respect to determinacy, stability under learning and optimality. We first review the recent literature. Open-loop interest … determinacy and stability under learning, and implements optimal policy. We then show that Friedman’s rule also can generate … equilibria that are determinate and stable under learning. However, in computing the mean quadratic welfare loss, we find that …

This paper demonstrates that the adaptive learning approach to modelling private sector expectations can be used as an … the two rational expectations equilibria is stable under least-squares learning, and that it is always the low …

rational expectations even if time-varying but stationary term premia are allowed for. A hypothesis of rational learning about …

uncertainty and learning. We find that the presence of a strategic interaction between the home and foreign central banks creates … an additional motivation for caution in monetary policy. An activist policy designed to help the learning of the home … central bank is suboptimal since it generates a strong reaction from the foreign central bank. As joint learning by the home …