Arbeitspapier
Can the learnability criterion ensure determinacy in New Keynesian models?
Forward-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.
- Sprache
-
Englisch
- Erschienen in
-
Series: Cardiff Economics Working Papers ; No. E2012/16
- Klassifikation
-
Wirtschaft
Existence and Stability Conditions of Equilibrium
Expectations; Speculations
- Thema
-
New-Keynesian
Taylor Rule
Determinacy
E-stability
Learnability
Neukeynesianische Makroökonomik
Regression
Lernen
Rationale Erwartung
Taylor-Regel
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Minford, Patrick
Srinivasan, Naveen
- Ereignis
-
Veröffentlichung
- (wer)
-
Cardiff University, Cardiff Business School
- (wo)
-
Cardiff
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Minford, Patrick
- Srinivasan, Naveen
- Cardiff University, Cardiff Business School
Entstanden
- 2012
Ähnliche Objekte (12)
Determinacy in new Keynesian models: A role for money after all?
Can a small New Keynesian model of the world economy with risk-pooling match the facts?
Where next for monetary policy? Lessons from the financial crisis and the pandemic
Post-Brexit realism and international law: Renegotiating a bad Withdrawal Agreement
Commentary on economic projections and rules of thumb for monetary policy (by Athanasios Orphanides and Volker Wieland)
Understanding UK trade agreements with the EU and other countries
The banking crisis: A rational interpretation
A note rebutting the recent Cambridge Econometrics assessment of Brexit on the UK and London economies: Commissioned by London Mayor Khan
Free Trade under Brexit: Why its benefits have been widely underestimated
The effects of Brexit on the UK economy
Evaluating European trading arrangements
Can the fiscal theory of the price level explain UK inflation in the 1970s?
Determinacy in new Keynesian models: A role for money after all?
Can a small New Keynesian model of the world economy with risk-pooling match the facts?
Where next for monetary policy? Lessons from the financial crisis and the pandemic
Post-Brexit realism and international law: Renegotiating a bad Withdrawal Agreement
Commentary on economic projections and rules of thumb for monetary policy (by Athanasios Orphanides and Volker Wieland)
Understanding UK trade agreements with the EU and other countries
The banking crisis: A rational interpretation
A note rebutting the recent Cambridge Econometrics assessment of Brexit on the UK and London economies: Commissioned by London Mayor Khan
Free Trade under Brexit: Why its benefits have been widely underestimated
The effects of Brexit on the UK economy
Evaluating European trading arrangements
Can the fiscal theory of the price level explain UK inflation in the 1970s?
Determinacy in new Keynesian models: A role for money after all?
Can a small New Keynesian model of the world economy with risk-pooling match the facts?
Where next for monetary policy? Lessons from the financial crisis and the pandemic
Post-Brexit realism and international law: Renegotiating a bad Withdrawal Agreement
Commentary on economic projections and rules of thumb for monetary policy (by Athanasios Orphanides and Volker Wieland)
Understanding UK trade agreements with the EU and other countries
The banking crisis: A rational interpretation
A note rebutting the recent Cambridge Econometrics assessment of Brexit on the UK and London economies: Commissioned by London Mayor Khan
Free Trade under Brexit: Why its benefits have been widely underestimated
The effects of Brexit on the UK economy
Evaluating European trading arrangements