Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy?

Kaushik Mitra and Seppo Honkapohja

No 04/13, Royal Holloway, University of London: Discussion Papers in Economics from Department of Economics, Royal Holloway University of London

Abstract: Recent models of monetary policy can have indeterminacy of equilibria, which is often viewed as a di±culty of these models. We consider the significance of indeterminacy using the learning approach to expectations formation. We employ expectational stability as a selection criterion for different equilibria and derive the expectational stability and instability conditions for forward-looking multivariate models, both without and with lags. The results are applied to several monetary policies.

Keywords: Adaptive learning; stability; sunspots; monetary policy (search for similar items in EconPapers)
JEL-codes: D84 E31 E52 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2004-07, Revised 2004-07
New Economics Papers: this item is included in nep-mac and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.rhul.ac.uk/economics/Research/WorkingPapers/pdf/dpe0413.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.rhul.ac.uk/economics/Research/WorkingPapers/pdf/dpe0413.pdf [307 Temporary Redirect]--> https://www.rhul.ac.uk/economics/Research/WorkingPapers/pdf/dpe0413.pdf [307 Temporary Redirect]--> https://www.royalholloway.ac.uk/economics/Research/WorkingPapers/pdf/dpe0413.pdf)

Related works:
Journal Article: Are non-fundamental equilibria learnable in models of monetary policy? (2004)
Working Paper: Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? (2001)
Working Paper: Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy? (2001)
Working Paper: Are Non-Fundamental Equilibria Learnable in Models of Monetary Policy?
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hol:holodi:0413

Ordering information: This working paper can be ordered from
Egham Hill, Egham, Surrey, TW20 0EX, UK.

Access Statistics for this paper

More papers in Royal Holloway, University of London: Discussion Papers in Economics from Department of Economics, Royal Holloway University of London Egham Hill, Egham, Surrey, TW20 0EX, UK..
Bibliographic data for series maintained by Claire Blackman ( this e-mail address is bad, please contact ).