This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …

We study the impact of adaptive learning for the design of a robust monetary policy using a small open-economy New … with model misspecification. Learning induces an intertemporal trade-off for the central bank, i.e., stabilizing inflation … possibility to conduct robust monetary policy is limited in a small open economy under learning for any exchange rate pass …

estimation of the parameters in an auxiliary model. The learning scheme employed by the agents belongs to the class of stochastic …

macroeconomic models in which agents are boundedly rational and use an adaptive learning rule to form expectations of the endogenous … estimate it empirically. Two prominent learning algorithms are considered, namely constant gain and decreasing gain learning …. For each of the two learning rules, the analysis proceeds in two stages. First, the paper derives the asymptotic …

Adaptive learning under constant-gain allows persistent deviations of beliefs from equilibrium so as to more … learning estimates for a general class of dynamic macroeconomic models under constant-gain learning. Our approximation provides … renewed convergence conditions that depend on the learning gain and the model's structural parameters. We validate the …

I introduce Expectational Business Cycles where aggregate activity fluctuates due to learning, heterogeneous updating …