Cao, Shuo; Crump, Richard K.; Eusepi, Stefano; Mönch, … - 2021 - Revised August 2021
Using a unique data set of individual professional forecasts, we document disagreement about the future path of … monetary policy, particularly at longer horizons. The stark differences in short rate forecasts imply strong disagreement about … the risk-return trade-off of longer-term bonds. Longer-horizon short rate disagreement co-moves with term premiums. We …