Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/65777 
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dc.contributor.authorMinford, Patricken
dc.contributor.authorSrinivasan, Naveenen
dc.date.accessioned2012-09-04-
dc.date.accessioned2012-11-02T14:28:03Z-
dc.date.available2012-11-02T14:28:03Z-
dc.date.issued2012-
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
dc.language.isoengen
dc.publisher|aCardiff University, Cardiff Business School |cCardiffen
dc.relation.ispartofseries|aCardiff Economics Working Papers |xE2012/16en
dc.subject.jelC62en
dc.subject.jelD84en
dc.subject.ddc330en
dc.subject.keywordNew-Keynesianen
dc.subject.keywordTaylor Ruleen
dc.subject.keywordDeterminacyen
dc.subject.keywordE-stabilityen
dc.subject.keywordLearnabilityen
dc.subject.stwNeukeynesianische Makroökonomiken
dc.subject.stwRegressionen
dc.subject.stwLernenen
dc.subject.stwRationale Erwartungen
dc.subject.stwTaylor-Regelen
dc.subject.stwTheorieen
dc.titleCan the learnability criterion ensure determinacy in New Keynesian models?-
dc.typeWorking Paperen
dc.identifier.ppn72375151Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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