Dynamic information aggregation: Learning from the past

With dispersed information, how much can agents learn from past endogenous aggregates such as prices or output? In a rational-expectations equilibrium, if general equilibrium effects are strong enough, no longer perfectly reveal underlying fundamentals. this confounding regime, the of informational frictions persistent over time, and aggregate outcome displays an initial under-reaction followed by delayed over-reaction relative to its perfect-information counterpart. standard New Keynesian model, we show that information aggregation helps bring model predictions on forecasts closer data.