We develop a model of firm learning in volatile markets with noisy signals and test its predictions using historical … improvements from learning are faster where market signals are noisier. …

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 …

certain features of monetary policy rules that facilitate learning. However a treatment of policy design for learnability in … worlds where agents have potentially misspecified their learning models has yet to surface. This paper provides such a … understanding of the workings of the economy and that their learning the reduced forms of the economy is subject to potentially …

: rational expectations and learning. We show that in this environment the ability to stabilize the real side of the economy is … private learning and misperceptions of natural rates call for greater policy inertia, a more aggressive response to inflation … economy. We show that such policies are quite robust to potential misspecification of private sector learning and the …