monetary policy in the United States, in particular its interaction with the formation of inflation expectations and the … linkages between monetary policy, inflation expectations and the behaviour of CPI inflation. We use Livingston Survey data for … expected inflation, measured at a bi-annual frequency, actual inflation, unemployment and a nominal interest rate to estimate …

confirm the role played by changes in expectations on consumption plans, and thus, by the confidence channel as an additional …

, money is used in equilibrium and the optimal inflation rate is positive. …The rate-of-return-dominance puzzle asks why low-return assets, like fiat money, are used in actual economies given … monetary models which arbitrarily restrict the marketability properties of alternative assets to make money valuable are …

inflation. Excess liquidity, rather than heading towards the market of consumer goods, could have moved towards the asset … prices, and the extension of the quantitative equation of money to transactions on assets does not stabilize the money …

are significantly larger than under rational expectations. In our benchmark case calibrated using US data on leverage …, relative to rational expectations. When fed with the actual leverage innovations, the learning model predicts the correct … magnitude for the Great Recession, while its rational expectations counterpart predicts a counter-factual expansion. In addition …