, built for policy simulation and forecasting. In constructing the model, consistent treatment of expectations is emphasized …. Following current theoretical literature, intertemporal optimization with rational expectations is taken as the starting point … formation of expectations. …

assumption that all imports are intermediate goods. Instead of imposing rational expectations a priori, Consensus Economics … survey data and OECD inflation forecasts are used to proxy inflation expectations. The results suggest that, compared with a … specification. Moreover, in the open economy context, and even if we allow for persistence in expectations, the hybrid specification …

the euro area: the older expectations-augmented Phillips curve and the new Keynesian Phillips curve. The main focus is on … the role of expectations and comparison of the two theories. Instead of imposing rational expectations, an alternative and … in principle less restrictive approach is applied to operationalising expectations. Direct measures of inflation …

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 …

model under rational expectations and revised (final) data. Alternatively, instead of imposing rational expectations … hypothesis we use real- time information, ie Consensus Economics survey data, to generate empirical proxies for expectations in … expectations, the errors in measured expectations and real-time current output gaps are positively autocorrelated. We produce …

This paper shows that the Ricardian Equivalence proposition can continue to hold when expectations are not rational and … are instead formed using adaptive learning rules. In temporary equilibrium, with given expectations, Ricardian Equivalence … holds under the standard conditions for its validity under rational expectations. Furthermore, Ricardian Equivalence holds …

This paper investigates the measurement of anticipated interest rate policy and the effects of these expectations on … the term structure of nominal interest rates. It is shown that, under the expectations hypothesis, the level of long … between the market interest rate and the steering rate; and market expectations of the next steering rate change. The …

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. …

euro area. Instead of imposing rational expectations, direct measures, ie OECD forecasts, are used as empirical proxies for … economic agents´ inflation expectations. Real marginal costs are proxied by three different measures. The results suggest that … OECD inflation forecasts perform relatively well as a proxy for inflation expectations in the euro area, since under this …

of imposing any specific form of expectations formation, di-rect measures, ie Consensus Economics survey data are used to … proxy economic agents’ inflation expecta-tions. According to the results, the New Classical Phillips curve has satisfactory … forward-looking, and inflation cannot instantaneously adjust to changes in expecta-tions. Consequently, even allowing for …