Adaptive Learning and the Cyclical Behavior of Output and Inflation.

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates by fitting econometric models to data. Agents are uncertain about which model to fit and can choose from a class of models. Only some of the models in this class are consistent with rational expectations.

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Year of publication:	2000
Authors:	Adam, K.
Institutions:	Department of Economics, European University Institute
Subject:	INFLATION \| FORECASTS \| BEHAVIOUR

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Series:	Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	40 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles ; E37 - Forecasting and Simulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005744273