Dealing with adaptive expectations in Stock-Flow consistent models

Expectations and the Stability of Stock-Flow Consistent Models

“…Adaptive expectations have been recently used in several SFC models (Burgess et al, 2016;Caiani et al, 2016;Le Heron, 2011;Meijers & Muysken, 2022;Santos & Zezza, 2008). Recently, a study shows that the steady state of SFC models is affected by different specifications of adaptive expectation rules (Kappes & Milan, 2020).…”