Learning, heterogeneity, and complexity in the New Keynesian model
(2019)
Journal Article
We present a New Keynesian model in which a fraction n of agents are fully rational, and a fraction 1 − n of agents are bounded rational. After deriving a simple reduced form, we demonstrate that the Taylor condition is sufficient for determinacy and... Read More about Learning, heterogeneity, and complexity in the New Keynesian model.