Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the … equilibria. Further features of learning, such as discounting of older data, use of misspecified models, or heterogeneous choice … by agents between competing models, generate novel learning dynamics. Empirical applications are reviewed and the roles …

-referential system, we find that learning dynamics lead to selection of one of the two models. However, there are parameter regions for …

models of expectations formation that rely on econometric learning. Some apparently natural policy rules turn out to imply … expectational instability of private agents' learning. We use the standard New Keynesian model to illustrate this problem and survey … learning. We then consider some practical concerns such as measurement errors in private expectations, observability of …

agents forecast using adaptive learning. Because of the zero lower bound on interest rates, active interest rate rules are … learning dynamics we find the additional possibility of a liquidity trap, in which the economy slips below this low inflation …