under private agent learning can in some cases be stable when the observed sunspot has a suitable time series structure. In …

We examine existence and stability under learning of sunspot equilibria in a New Keynesian model incorporating inertia …

be led to rules that generate indeterminacy and/or instability under learning. This problem is compounded by uncertainty … about structural parameters since an optimal rule that is determinate and stable under learning for one calibration may be … indeterminate or unstable under learning under a different calibration. We advocate a procedure in which policymakers restrict …

solutions under adaptive learning, focusing on "common factor" or "resonant frequency" representations in which the observed …

parameter regions in which these sunspots are stable under learning. However, once the parameters are restricted to coincide …

equilibrium: eductive stability never obtains. This impossibility theorem has a counterpart when adaptive learning is incorporated …

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 …