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Heterogeneous expectations, indeterminacy, and postwar US business cycles

Ilabaca, Francisco; Milani, Fabio - 2020

This paper estimates a New Keynesian model extended to include heterogeneous expectations, to revisit the evidence that postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot-driven fluctuations in the pre-1979 sample, with a switch...

Persistent link: https://www.econbiz.de/10012200338

Heterogeneous inflation expectations and learning

Madeira, Carlos; Zafar, Basit - In: Journal of money, credit and banking : JMCB 47 (2015) 5, pp. 867-896

Persistent link: https://www.econbiz.de/10011345138

Chapter 19. Inflation Expectations, Adaptive Learning and Optimal Monetary Policy

Gaspar, Vitor; Smets, Frank; Vestin, David - In: Handbook of monetary economics : volume 3, (pp. 1055-1095). 2010

This chapter investigates the implications of adaptive learning in the private sector's formation of inflation … allows us to investigate how and to what extent a change in the assumption of how agents form their inflation expectations … anchoring inflation expectations. We also find that the simple commitment rule under rational expectations is robust when …

Persistent link: https://www.econbiz.de/10014025623

Deflation expectations

Banerjee, Ryan; Mehrotra, Aaron N. - 2018

Persistent link: https://www.econbiz.de/10011866085

Expectational business cycles

Guse, Eran A. (contributor) - 2004

Persistent link: https://www.econbiz.de/10002598909

Expectational Business Cycles

Guse, Eran - 2004

I introduce Expectational Business Cycles where aggregate activity fluctuates due to learning, heterogeneous updating rules and random changes in the social norm predictor. Agents use one of two updating rules to learn the equilibrium values while heterogeneity is dictated via an evolutionary...

Persistent link: https://www.econbiz.de/10014068089

Learning with expert advice

Molnár, Krisztina - In: Journal of the European Economic Association 5 (2007) 2/3, pp. 420-432

Persistent link: https://www.econbiz.de/10003483632

Deflationary shocks and de-anchoring of inflation expectations

Busetti, Fabio; Ferrero, Giuseppe; Gerali, Andrea; … - 2014

Persistent link: https://www.econbiz.de/10011472629

Existence of adaptively stable sunspot equilibria near an indeterminate steady state

Evans, George W.; Honkapohja, Seppo - 2001

We examine the nonlinear model Xt = Et F(xt+1) . Markov SSEs exist near an indeterminate steady state, X = F(X), provided F´(X)> 1. We show that there exist Markov SSEs that are E-stable, and therefore locally stable under adaptive learning, if F´(X)< -1.

Persistent link: https://www.econbiz.de/10011398793

Expectational stability of resonant frequency sunspot equilibria

Evans, George W.; Honkapohja, Seppo - 2001

We consider the stability under adaptive learning of the complete set of solutions to the model when . In addition to the fundamentals solution, the literature describes both finite-state Markov sunspot solutions, satisfying a resonant frequency condition, and autoregressive solutions depending...

Persistent link: https://www.econbiz.de/10011398912