Evans, George W. (contributor); … - 2008
imply
expectational instability of private agents’ learning. We use the standard New
Keynesian model to illustrate this … first summarize research on
learnability of REE when the basic New Keynesian model is extended to in-
corporate further … deflation.
2 The Model
We conduct our discussion using the New Keynesian model that has become
the workhorse in the analysis of …