It is well known that the concept of "determinacy"-a single stable solution-plays a major role in contemporary monetary policy analysis. But while determinacy is desirable, other things equal, it is not necessary for a solution to be plausible and is not sufficient for a solution to be...

It is well known that the concept of "determinacy"-a single stable solution-plays a major role in contemporary monetary policy analysis. But while determinacy is desirable, other things equal, it is not necessary for a solution to be plausible and is not sufficient for a solution to be...

It is argued that learnability/E-stability is a necessary condition for a RE solution to be plausible. A class of linear models considered by Evans, G.W. and Honkapohja, S. [2001. Learning and Expectations in Macroeconomics, Princeton University Press.] is shown to include all models of the form...