This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of … JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have …

We introduce Behavioral Learning Equilibria (BLE) into a multivariate linear framework and apply it to New Keynesian … Rational Expectations (REE), BLE, and constant gain learning models shows that the BLE model outperforms the REE benchmark and … is competitive with constant gain learning models in terms of in-sample and outof-sample fitness. Sample …