We study the impact of adaptive learning for the design of a robust monetary policy using a small open-economy New … with model misspecification. Learning induces an intertemporal trade-off for the central bank, i.e., stabilizing inflation … possibility to conduct robust monetary policy is limited in a small open economy under learning for any exchange rate pass …

macroeconomic models in which agents are boundedly rational and use an adaptive learning rule to form expectations of the endogenous … estimate it empirically. Two prominent learning algorithms are considered, namely constant gain and decreasing gain learning …. For each of the two learning rules, the analysis proceeds in two stages. First, the paper derives the asymptotic …

estimation of the parameters in an auxiliary model. The learning scheme employed by the agents belongs to the class of stochastic …

Adaptive learning under constant-gain allows persistent deviations of beliefs from equilibrium so as to more … learning estimates for a general class of dynamic macroeconomic models under constant-gain learning. Our approximation provides … renewed convergence conditions that depend on the learning gain and the model's structural parameters. We validate the …

The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly … interact in social-learning settings with distinct information structures. In each round of interaction, they use their … behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each …

rationality behaviour by people. Quite recent developments in the Economics of Knowledge, i.e. the so-called learning models, have …

Bateson. Learning requires to recognize a series of situations as identical and then to observe the effect of given variables … hypothesis to be continuously tested. This vision of bounds and learning has many implications for the debate on rationality and …