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dc.contributor.authorMinford, Patricken_US
dc.contributor.authorSrinivasan, Naveenen_US
dc.date.accessioned2012-09-04en_US
dc.date.accessioned2012-11-02T14:28:03Z-
dc.date.available2012-11-02T14:28:03Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/65777-
dc.description.abstractForward-looking RE models such as the popular New Keynesian (NK) model do not provide a unique prediction about how the model economy behaves. We need some mechanism that ensures determinacy. McCallum (2011) says it is not needed because models are learnable only with the determinate solution and so the NK model, once learnt in this way, will be determinate. We agree: the only learnable solution that has agents converge on the true NK model is the bubble-free one. But once they have converged they must then understand the model and its full solution therefore including the bubble. Hence the learnability criterion still fails to pick a unique RE solution in NK models.en_US
dc.language.isoengen_US
dc.publisherCardiff University, Cardiff Business School Cardiffen_US
dc.relation.ispartofseriesCardiff Economics Working Papers E2012/16en_US
dc.subject.jelC62en_US
dc.subject.jelD84en_US
dc.subject.ddc330en_US
dc.subject.keywordNew-Keynesianen_US
dc.subject.keywordTaylor Ruleen_US
dc.subject.keywordDeterminacyen_US
dc.subject.keywordE-stabilityen_US
dc.subject.keywordLearnabilityen_US
dc.subject.stwNeukeynesianische Makroökonomiken_US
dc.subject.stwRegressionen_US
dc.subject.stwLernenen_US
dc.subject.stwRationale Erwartungen_US
dc.subject.stwTaylor-Regelen_US
dc.subject.stwTheorieen_US
dc.titleCan the learnability criterion ensure determinacy in New Keynesian models?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn72375151Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Cardiff Economics Working Papers, Cardiff Business School, Cardiff University

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