文章基本信息

标题：Convergence to Rational Expectations in Learning Models: A Note of Caution
本地全文：下载
作者：YiLi Chien ; YiLi Chien ; In-Koo Cho 等
期刊名称：Federal Reserve Bank of St. Louis Review
印刷版ISSN：0014-9187
出版年度：2021
卷号：103
期号：3
DOI：10.20955/r.103.351-65
语种：English
出版社：Federal Reserve Bank of St. Louis
摘要：We show in a simple monetary model that the learning dynamics do not converge to the rational expectations monetary steady state. We then show it is necessary to restrict the learning rule to obtain convergence. We derive an upper bound on the gain parameter in the learning rule, based on economic fundamentals in the monetary model, such that gain parameters above the upper bound would imply that the learning dynamics would diverge from the rational expectations monetary steady state.