Frenkel, Michael; Jung, Jin-Kyu; Rülke, Jan-Christoph - In: Empirical Economics 62 (2021) 3, pp. 1037-1078
asymmetric loss function and report evidence that central banks perceive an overprojection of their longer-term interest rate … forecasts as twice as costly as an underprojection of the same size. We find that forecast rationality is consistent with biased …