Abstract
Recent research has explored how minor changes in expectation formation can change the stability properties of a model (; ). This article builds on this research by examining an economy subject to a variety of monetary policy rules under an endogenous learning algorithm proposed by . The results indicate that operational versions of optimal discretionary rules are not robustly stable, as in . In addition, commitment rules are not robust to minor changes in expectational structure and parameter values.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
