This chapter provides a survey of the recent work on learning in the context of
macroeconomics. Learning has several roles. First, it provides a boundedly rational model of …

Behavioral economics uses evidence from psychology and other disciplines to create
models of limits on rationality, willpower and self-interest, and explore their implications in …

How do individuals form expectations about future inflation? We propose that individuals
overweight inflation experienced during their lifetimes. This approach modifies existing …

The substantially revised fourth edition of a widely used text, offering both an introduction to
recursive methods and advanced material, mixing tools and sample applications. Recursive …

In the past fifteen years, inflation has been conquered by many advanced countries. History
reveals, however, that it has been conquered before and returned. In The Conquest of …

Investors' subjective capital gains expectations are a key element explaining stock price
fluctuations. Survey measures of these expectations display excessive optimism …

Since 1947, hyperinflations in market economies have been rare. More common have been
longer inflationary processes at rates above 100 percent per annum. This paper examines …

Monetary DGSE models under rational expectations typically require large degrees of
features as habit formation in consumption and inflation indexation to match the inertia of …

We develop an equivalence between the equilibrium effects of incomplete information and
those of two behavioral distortions: myopia, or extra discounting of the future; and anchoring …

This paper considers how the role of inflation as a leading business-cycle indicator affects
the pricing of nominal bonds. We examine a representative agent asset pricing model with …