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Are stationary hyperinflation paths learnable?

Adam, Klaus; Evans, George W.; Honkapohja, Seppo - 2003

Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under adaptive learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the...

Persistent link: https://www.econbiz.de/10010298287

Are stationary hyperinflation paths learnable?

Adam, Klaus; Evans, George W.; Honkapoja, Seppo - 2003

Persistent link: https://www.econbiz.de/10011507885

Expectational Stability of Stationary Sunspot Equilibria in a Forward-Looking Linear Model

Evans, George W.; Honkapohja, Seppo - 2003

We consider the stability under adaptive learning of the complete set of solutions to the model x(t)= b*Ex{t+1} when |b| 1. In addition to the fundamentals solution, the literature describes both finite-state Markov sunspot solutions and autoregressive solutions depending on an arbitrary...

Persistent link: https://www.econbiz.de/10014112247

Are Hyperinflation Paths Learnable?

Adam, Klaus; Evans, George W.; Honkapohja, Seppo - 2005

Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the...

Persistent link: https://www.econbiz.de/10014061794

Are Stationary Hyperinflation Paths Learnable?

Adam, Klaus; Evans, George W.; Honkapohja, Seppo - 2021

Persistent link: https://www.econbiz.de/10013319951

Liquidity Traps and Expectation Dynamics : Fiscal Stimulus or Fiscal Austerity?

Benhabib, Jess - 2012

We examine global dynamics under infinite-horizon learning in New Keynesian models where the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), the intended steady state is locally but not globally stable. Unstable deflationary paths emerge after...

Persistent link: https://www.econbiz.de/10012460546

Liquidity Traps and Expectation Dynamics : Fiscal Stimulus or Fiscal Austerity?

Benhabib, Jess - 2012

Persistent link: https://www.econbiz.de/10013106020

The E-Correspondence Principle

Evans, George W.; Honkapohja, Seppo - 2021

We introduce the E-correspondence principle for stochastic dynamic expectations models as a tool for comparative dynamics analysis. The principle is applicable to equilibria that are stable under least squares and closely related learning rules. With this technique it is possible to study,...

Persistent link: https://www.econbiz.de/10013319530

A Model of Near-Rational Exuberance

Bullard, James; Evans, George W.; Honkapohja, Seppo - 2008

We study how the use of judgment or "add-factors" in forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods. We isolate conditions under which new phenomena, which we call exuberance equilibria, can exist in a standard self-referential environment....

Persistent link: https://www.econbiz.de/10014052421

Expectations and the stability problem for optimal monetary policies

Evans, George W.; Honkapohja, Seppo - 2000

Eine auf den Fundamentaldaten beruhende Regelbindung der Geldpolitik ohne Selbstverpflichtung, die bei vollkommen … geeigneter Weise in die optimale Geldpolitik einbezogen werden. Diese eindeutige Schlußfolgerung gilt auch dann, wenn sich der … wichtig es ist, die Geldpolitik angemessen zu gestalten und dabei nicht nur die Fundamentaldaten, sondern auch direkt die …

Persistent link: https://www.econbiz.de/10011418901