Structural change has been conjectured to lead to an upward bias in the estimated forward expectations coefficient in … particular, we investigate the issue of upward bias in the estimated coefficients of the expectations variable in the New …

Standard solution methods for linearised models with rational expectations take the structural parameters to be … agents' beliefs when forming expectations, and whether the structural changes are known in advance. The solutions can be put …

Expectations of the future play a key role in the transmission of monetary policy. Over recent years, a lot of … theoretical and applied macroeconomic research has been based on the assumption of rational expectations. However, estimated … estimates a small open economy model for Australia assuming two different types of expectations: rational expectations and …

Whether people form their expectations of the future in a model-consistent or extrapolative manner, has implications … information about inflation expectations – that survey measures of expectations are inconsistent with rational expectations, but … the public believes the bank will adhere to. When inflation expectations differ between groups, the <em>ex ante</em> real …