Macroeconomic Policy, Evolution, and Self-Confirming Equilibrium
Title: Macroeconomic Policy, Evolution, and Self-Confirming Equilibrium
Author: SARGENT, Thomas J.
Series/Number: EUI MWP LS; 2008/08
This paper uses policy disputes about centuries of experience with commodity money systems and US monetary policy in the 1970s and 1980s to illustrate macroeconomists' enduring struggles with Hume's induction problem and their connection to selfconfirming equilibria
Subject: Induction; misspecification; self-confirming equilibrium; adaptation; inflation; Pareto; problem
Type of Access: openAccess