Indeterminacy and imperfect information

We study equilibrium determination in an environment where two types of agents have different information sets: Fully informed observe histories all exogenous and endogenous variables. Less only a strict subset the full set need to solve dynamic signal extraction problem gather about variables they do not directly observe. Both know structure model form expectations rationally. In this environment, we identify new channel that generates indeterminacy: Optimal processing less agent introduces stable dynamics into equation system lead self-fulling expectations. For parameter values imply unique under information, limited rational is indeterminate. illustrate our framework with monetary policy models imperfectly central bank follows interest rate rule.