This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …

Incorporating adaptive learning into macroeconomics requires assumptions about how agents incorporate their forecasts … into their decision-making. We develop a theory of bounded rationality that we call finite-horizon learning. This approach … generalizes the two existing benchmarks in the literature: Euler-equation learning, which assumes that consumption decisions are …

This paper develops an adaptive learning formulation of an extension to the Ball, Mankiw and Reis (2005) sticky …'s preferences for price vs. output stability, the learning process can converge to a new equilibrium in which both output and price …