' experiment through which to study the rationality of expectations. Our results show that East Germans significantly over …

exchange. The experiment tightly tests the predictions of Kőszegi and Rabin (2006), as when the probability of forced exchange … theoretical predictions. Our findings suggest a potential path forward incorporating failures to completely forecast sensations of …

contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high … incomes experience guilt. The former seek to raise their income, and latter seek to reduce it. The greater the inflation rate …, a rise in the inflation rate leads workers to supply more labor over the contract period, generating a significant …

This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth" describing the … able to work themselves out fully. In this context, monetary shocks have a gradual and delayed effect on inflation, and …

and inflation rates. Building on the lessons from recent advances in time-series econometrics, we suggest instead that one …

-run inflation-unemployment tradeoff. …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal …

hyperbolic discounting leads to inflation having significant long-run effects on real variables. …