Notes on Agents’ Behavioural Rules under Adaptive Learning and Studies of Monetary Policy*

Abstract

This chapter tries to clarify some discussions on the formulation of individual intertemporal behaviour under adaptive learning in representative agent models. The authors first discuss two suggested approaches and related issues in the context of a simple consumption‐saving model. Secondly, they show that the analysis of learning in the NewKeynesian monetary policy model based on “Euler equations” provides a consistent and valid approach.