Rajiv Sethi on George Evans's Masterclass on the Stability of General Equilibrium Macro Models Under Plausible Rules for Learning About How the World Works - Grasping Reality with Both Hands

Rajiv:

George Evans of U. Oregon Teaches His Masterclass on the Stability of General Equilibrium Macro Models Under Plausible Rules for Learning About How the World Works - Grasping Reality with Both Hands: Brad, you really ought to have linked here to your post on Bullard's paper:

http://delong.typepad.com/sdj/2010/08/extremely-rough-a-note-on-bullards-interpretation-in-his-seven-faces-of-the-peril-paper-of-benhabib-et-al.html

That is one of your most interesting posts in my opinion. It explains intuitively why the higher inflation steady state is locally but not globally stable under learning, and also completes George's analysis by asking what happens if one somehow ends up in the vicinity of the deflation trap.