Browsing Evans, George W. by Title
Now showing items 2743 of 43

Monetary Policy and Heterogeneous Expectations
(University of Oregon, Dept of Economics, 20100430)This paper studies the implications for monetary policy of heterogeneous expectations in a New Keynesian model. The assumption of rational expec tations is replaced with parsimonious forecasting models where agents ... 
Monetary Policy and Stable Indeterminacy with Inertia
(University of Oregon, Dept. of Economics, 20040329)We examine existence and stability under learning of sunspot equilibria in a New Keynesian model incorporating inertia. Indeterminacy remains prevalent, stable sunspots abound, and inertia in IS and AS relations do not ... 
Monetary Policy, Endogenous Inattention, and the Volatility Tradeoff
(University of Oregon, Dept of Economics, 20041207)This paper addresses the outputprice volatility puzzle by studying the interaction of optimal monetary policy and agents' beliefs. We assume that agents choose their information acquisition rate by minimizing a loss ... 
Monetary Policy, Expectations and Commitment
(University of Oregon, Dept of Economics, 20050406)This is a revised and shortened version of Working Paper 200211. Commitment in monetary policy leads to equilibria that are superior to those from optimal discretionary policies. A number of interest rate reaction functions ... 
Monetary policy, expectations and commitment
(University of Oregon, Dept. of Economics, 20020522)Commitment in monetary policy leads to equilibria that are superior to those from optimal discretionary policies. A number of interest rate reaction functions and instrument rules have been proposed to implement or approxmiate ... 
Monetary policy, indeterminacy and learning
(University of Oregon, Dept. of Economics, 20031011)The development of tractable forward looking models of monetary policy has lead to an explosion of research on the implications of adopting Taylortype interest rate rules. Indeterminacies have been found to arise for some ... 
NearRational Exuberance
(University of Oregon, Dept of Economics, 20050917)We study how the use of judgement or "addfactors" in macroeconomic forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods. We isolate conditions under which new phenomena, which ... 
Optimal Constrained Interestrate Rules
(University of Oregon, Dept of Economics, 20050519)We show that if policymakers compute the optimal unconstrained interestrate rule within a Taylortype class, they may be led to rules that generate indeterminacy and/or instability under learning. This problem is compounded ... 
Policy Interaction, Expectations and the Liquidity Trap
(University of Oregon, Dept. of Economics, 20030430)We consider inflation and government debt dynamics when monetary policy employs a global interest rate rule and private agents forecast using adaptive learning. Because of the zero lower bound on interest rates, active ... 
Policy Interaction, Learning and the Fiscal Theory of Prices
(University of Oregon, Dept. of Economics, 20020803)We investigate both the rational explosive inflation paths studied by (McCallum 2001), and the classification of fiscal and monetary polices proposed by (Leeper 1991), for stability under learning of the rational expectations ... 
Representations and Sunspot Stability
(University of Oregon, Dept of Economics, 20070101)By endowing his agents with simple forecasting models, or representations, Woodford (1990) found that finite state Markov sunspot equilibria may be stable under learning. We show that common factor representations ... 
A Simple Recursive Forecasting Model
(University of Oregon, Dept of Economics, 20050201)We compare the performance of alternative recursive forecasting models. A simple constant gain algorithm, used widely in the learning literature, both forecasts well out of sample and also provides the best fit to the ... 
Stable FiniteState Markov Sunspots
(University of Oregon, Dept of Economics, 20061009)We consider a linear univariate rational expectations model, with a predetermined variable, and study existence and stability of solutions driven by an extraneous finitestate Markov process. We show that when the model ... 
Stable Noisy Kstate Markov Sunspots
(University of Oregon, Dept. of Economics, 20020718)We consider a linear stochastic univariate rational expectations model, with a predetermined variable, and consider solutions driven by an extraneous finite state Markov process as well as by the fundamental noise. We ... 
Stable Sunspot Equilibira in a CashinAdvance Economy
(University of Oregon, Dept. of Economics, 20021025)We develop a monetary model with flexible supply of labor, cash in advance constraints and government spending financed by seignorage. This model has two regimes. One regime is conventional with two steady states. The other ... 
Stable Sunspot Solutions in Models with Predetermined Variables
(University of Oregon, Dept. of Economics, 20020417)We consider a linear stochastic univariate rational expectations model, with a predetermined variable, and provide alternative representations of SSEs (stationary sunspot equilibria). For a strict subset of the parameter ... 
Stagnation Regime of the New Keynesian Model and Current US Policy
(University of Oregon, Dept of Economics, 20101030)In Evans, Guse, and Honkapohja (2008) the intended steady state is locally but not globally stable under adaptive learning, and unstable deflationary paths can arise after large pessimistic shocks to expectations. In ...