multi-period forecasting model that is estimated under both adaptive learning and rational expectations. Term structure … neglected in the adaptive learning literature. Relative to the rational expectations version, our estimated DSGE model under … adaptive learning largely improves the model fit to the data, which include not just macroeconomic data but also the yield …

shocks is imposed. In this paper, I show that introducing adaptive learning with time-varying coefficients as in Slobodyan … area, the United States, and an exogenous rest of the world, with endogenous exchange rate determination. I show that the …