achieve robustness against incomplete information about the structure of the economy by distorting their expectations in a … particular direction. It shows how a linear rational expectations equilibrium under concern for robustness can be solved by … responses of private consumption to government expenditure shocks under robust expectations. …

This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation … expectations affect both inflation and output, and, on the other hand, how inflation expectations reflect developments in these … variables. The analyses make use of a simple VAR model of inflation, inflation expectations and the output gap that allows for …

rational expectations. This paper relaxes the assumption of rational expectations and it allows for learning instead. Economic … agents form expectations from simple models and update the parameters through constant-gain learning. I estimate the model by …

expectations scenario, where all individuals believe that inflation converges to a long run low level. Introducing expectations …

. Hayek's theory, not Keynes's, allows us to say when markets will behave in the way Keynes described and when they will … instead behave in more coordinated ways. In this sense, a Hayekian theory is needed to understand a Keynesian world. …

adaptive expectations and partial adjustment mechanisms. The paper demonstrates the difficulty of interpreting distributed lag …