, optimal monetary policy under commitment is associated with a determinate rational expectations equilibrium that is stable … central bank has to be sufficiently inflation rate averse for the rational expectations equilibrium to have the same …

converge to the rational expectations equilibrium as multiple equilibria may persist, even when a fully rational, but costly …

additional equilibria differ in some important respects fromthe usual equilibrium of the GrossmanStiglitz type which still exists …] or Evans and Honkapohja [2001]). Regarding the original GrossmanStiglitz type equilibrium, the stability results are less … clear cut, since this equilibrium might be unstable under eductive learning while it is always stable under adaptive …

equilibrium exists characterized by high persistence and excess volatility, and it is stable under learning. In a second …

This paper investigates the learnability of an equilibrium where agents formulate their forecasts under adaptive … learning with heterogeneously misspecified econometric models; the equilibrium is called a Heterogeneous Misspecification … Equilibrium (HME). The paper finds that the learnability condition of the HME is equal to or less than the condition of the …

Why is the rational expectations equilibrium locally indeterminate if the central bank raises the nominal interest rate …

equilibrium path from the corresponding perfect-foresight autoregressive Markov jump state motion. As the exact expression of the … condition for the mean-square stability of the obtained rational expectations equilibrium is also provided. -- Rational …