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 …

What is the impact of surprise and anticipated policy changes when agents form expectations using adaptive learning … rather than rational expectations? We examine this issue using the standard stochastic real business cycle model with lump …-shaped response, and tend to be prominently characterized by oscillations not present under rational expectations. These fluctuations …

form expectations using adaptive learning rather than rational expectations (RE). The output multipliers for government …

uncertainty is closely related to the output growth uncertainty. In forming expectations, individual forecasters seem to behave …

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. …

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 …