A fundamentals based monetary policy rule, which would be the optimal monetary policy without commitment when private agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules. This problem can be overcome if private expectations are...

A fundamentals based monetary policy rule, which would be the optimal monetary policy without commitment when private agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules. This problem can be overcome if private expectations are...

The promising predictive power of machine learning (ML) models is encouraging a wide range of applications, but the weak interpretability of their black-box feature is a major obstacle to their application to finance. The large scale of limit order book (LOB) data provides fertile ground for ML...