After the presentation of the Phillips curve as an empirical regularity (Phillips 1958 ) economists and policy makers alike have tried to exploit it for policy purposes. Even before the oil shocks in the seventies and early eighties this has had mixed success only. With the advent of...

We study a simple infinite horizon model with indivisible labor. We characterize the optimal plans under the assumptions that $\beta R = 1$ and that $1/2 \leq \beta 1$, where R is the gross interest rate and $\beta$ is the discount factor. We show that under those assumptions, optimal plans are...

In this paper we construct sunspot equilibria that arise from chaotic deterministic dynamics. These equilibria are stationary and have absolutely continuous stationary measures. We prove that they can be learned by a simple rule based on the histograms of past state variables. This work gives a...