Adaptively evolving expectations in models of monetary dynamics: The fundamentalists forward looking

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Journal Article
Annals of Operations Research, 1999, 89 pp. 21 - 34
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In the basic Cagan model of monetary dynamics, we allow inflationary expectations to be formed as a weighted average of fundamentalist and chartists expectations. We allow the weights to evolve adaptively according to the mechanism of Brock and Hommes [3] and study the resulting dynamic behaviour.
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