expectations amplify boom and bust cycles and how endogenous coordination on pessimistic expectations amplifies crises and slows …

and sunspots by establishing the existence of "statistical sunspots" in models that have a unique rational expectations … factors (e.g., sunspots, judgment, expectations shocks, etc.). In equilibrium, agents attribute, in a self‐fulfilling way …, some of the serial correlation observed in data to extrinsic noise, i.e., statistical sunspots. This leads to sunspot …