parameters, and in particular those assigning values of imperfections in the economy, the economy may be driven by sunspots at … some frequencies while sunspots can have no impact at other frequencies. …

'sunspots'. Separately, recent work by a number of authors has shown that sunspot equilibria previously thought to be unstable …

monetary policy and sunspots. The key distinction between the shocks lies in their relation to the realized policy shock. If … monetary policy is 'active', the sunspots are irrelevant, and the model responses to the news shocks are unique. In both cases …

monetary policy and sunspots. The key distinction between the shocks lies in their relation to the realized policy shock. If … monetary policy is 'active', the sunspots are irrelevant, and the model responses to the news shocks are unique. In both cases …

source of business cycles driven by self-fulfilling volatile expectations, i.e. sunspots. We also find that, in the presence …

standard theory. In line with the assumption of subjects expecting others to follow sunspots, subjects overestimate the number … sunspots, we provide conditions for a unique equilibrium where agents follow a sunspot announcement depending on the … sunspots, we find that about one-third of groups are eventually coordinating on sunspots, which is inconsistent with the …