interest rate rule, raising the possibility of inefficient fluctuations due to the dependence of expectations on extraneous … combine forward looking expectations and predetermined variables. We consider a variety of specifications that incorporate …

requirement that the underlying rational expectations equilibrium is locally indeterminate. We suggest ways in which policymakers …

and monetary policies proposed by Leeper (1991) for stability under learning of rational expectations equilibria (REE …

What is the impact of surprise and anticipated policy changes when agents form expectations using adaptive learning … rather than rational expectations? We examine this issue using the standard stochastic real business cycle model with lump …-shaped response, and tend to be prominently characterized by oscillations not present under rational expectations. These fluctuations …

form expectations using adaptive learning rather than rational expectations (RE). The output multipliers for government …

interest rate rule, raising the possibility of inefficient fluctuations due to the dependence of expectations on extraneous … combine forward looking expectations and predetermined variables. We consider a variety of specifications that incorporate …