| Article ID: | iaor20013969 |
| Country: | Netherlands |
| Volume: | 89 |
| Start Page Number: | 21 |
| End Page Number: | 34 |
| Publication Date: | Jun 1999 |
| Journal: | Annals of Operations Research |
| Authors: | Chiarella Carl, Khomin Alexander |
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 and study the resulting dynamic behaviour.