models of expectations formation that rely on econometric learning. Some apparently natural policy rules turn out to imply … expectational instability of private agents' learning. We use the standard New Keynesian model to illustrate this problem and survey … learning. We then consider some practical concerns such as measurement errors in private expectations, observability of …

difficulty of these models. We consider its significance using the learning approach to expectations formation by employing …

(constant gain) least-squares learning, for a range of gain parameters. We find that for operational forms of policy rules, i … Honkapohja (2003, 2006) deliver robust learning stability. In contrast, many proposed alternatives become unstable under learning …

agents have perfectly rational expectations, is unstable if in fact these agents follow standard adaptive learning rules … rule. These strong results extend to the case in which there is simultaneous learning by the policy maker and the private …

that is both locally determinate and stable under adaptive learning by private agents. A reaction function that …

stability under learning. Appropriately designed expectations-based rules can yield optimal rational expectations equilibria … that are both determinate and stable under learning. Some simple instrument rules and approximate targeting rules also have … implications of expectation shocks not arising from transitional learning effects. …

and monetary policies proposed by Leeper (1991), for stability under learning of the rational expectations equilibria (REE …). Our first result is that the fiscalist REE in the model of McCallum (2001) is not locally stable under learning. In … domains for which the fiscal theory solution, in which fiscal variables affect the price level, can be a stable outcome under …