We examine optimal policy in an open-economy model with uncertainty and learning, where monetary policy actions affect …

intricate learning/evolving process. In this study, an agent-based computational model is employed to look at how a risk …

and its watershed. We adapted the method of optimal control with Bayes' learning of Easley and Kiefer (Econometrica 1988 … learning, i.e., there is no bandit problem in this context. We numerically solve the model and use Monte Carlo methods to solve … for the mean time to learn and to determine the sensitivity of the speed of learning with respect to changes in the …

: recessions "scar" the economy by killing off "potentially good firms". By adding learning to a vintage model, I show that as a … recession arrives and persists, the reduced profitability limits the scope of learning, makes labor less concentrated on good …

follow a trend which is updated through a geometric learning process. Our analysis shows that the heterogeneity, trend … chasing through learning, and the interplay of noisy processes and a stable deterministic equilibrium can be the source of …

I introduce a method to transform a T-map when agents form expectations using a misspecified learning mechanism … "Restricted Perceptions Equilibria" (RPE) of such a model are learnable under adaptive learning. I present the New Keynesian … inertia where determinacy only changes with inertia if the REE and RPE are not stable under learning. Under restricted …